Weak Outlook Pours Cold Water on Nike's Upbeat Earnings Results

The firm shared a fiscal fourth-quarter earnings and revenue beat, however

Digital Content Manager
Jun 28, 2022 at 9:21 AM
facebook twitter linkedin

Nike Inc (NYSE:NKE) stepped into the earnings confessional this morning, posting fiscal fourth-quarter profits of 90 cents per share on $12.23 billion in revenue, both of which topped analysts' estimates. However, the sportswear concern's current-quarter revenue missed expectations, with Nike noting some weakness in its typically profitable Chinese market. As a result, NKE is traveling lower in premarket trading, last seen down 3% at $107.16. 

It's been a rough year for the Dow component, which has already shed 33.7% in 2022, and 28.4% in the past 12 months. The stock's 80-day moving average has loomed as a ceiling since it broke below the level in early January, while the 20-day trendline has stepped in as short-term pressure in recent sessions. 

Analysts have rushed in with price-target cuts. So far, no less than eight analysts have slashed their price objectives, including BMO all the way to $128 from $142. The brokerage bunch is still incredibly bullish, however. Heading into today, 18 of the 22 in coverage called the stock a "buy" or better. Meanwhile, the 12-month consensus price target of $143.48 is a healthy 29.9% premium to last night's close. 

Short sellers were hitting the exits ahead of Nike's earnings reports. In the last reporting period alone, short interest fell 23.3% and now makes up just a slim 0.8% of the stock's available float. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners