Nike Stock Climbs Ahead of Q1 Earnings

Nike Inc. (NYSE:NKE) shares are trading higher Thursday ahead of the company’s first-quarter earnings report, due after market close today. Nike stock is trading near recent lows. What should traders watch with NKE? Nike Set to Report Q1 Results After the Bell Wall Street expects Nike to post first-quarter revenue of $11.33 billion. That would mark a decline from $11.72 billion a year earlier. Even so, Nike has topped revenue forecasts for seven straight quarters and in eight of the last 10 overall. On profit, analysts are projecting 44 cents per share, down from 49 cents a year ago. The company has beaten EPS estimates for 12 consecutive quarters. Nike’s last report, covering the fiscal fourth quarter ended May 31, gives useful context for tonight’s numbers. Full-year revenue came in at $46.4 billion, flat on a reported basis but down 2% once currency effects are stripped out. Fourth-quarter revenue alone totaled $11.0 billion, down 1% as reported and down 4% on a currency-neutral basis. Wholesale revenue grew 4% to $6.6 billion, while Nike Direct fell 7% to $4.1 billion, a split that mirrors the broader pattern of wholesale strength and direct-to-consumer weakness investors are watching again this quarter. What a Beat Would Actually Mean For the Stock Nike has strung together a long run of topping Wall Street’s numbers, yet the stock has stayed stuck in a downtrend because investors haven’t seen fresh products or real innovation to get excited about. A beat tonight on both revenue and earnings would extend that streak, but it likely wouldn’t be enough on its own to break the stock out of its slump without something more concrete, like a major new launch or an acquisition, to shift the broader narrative. A miss, on the other hand, would strip away even that modest point of reassurance and could add pressure to a stock already trading well below where analysts see fair value. For now, Nike’s recent history suggests the numbers alone won’t settle the bigger question of whether Hill’s turnaround is actually taking hold. NKE Shares Are Rising NKE Price Action: Nike shares were trading 1.21% higher at $35.83 at the time of publication on Thursday. The stock is trading near its 52-week low of $35.15, according to Benzinga Pro. Read Also: Dow Dips Over 400 Points Following PCE Data: Investor Sentiment Improves, Greed Index Remains in ‘Fear’ Zone Image: Tupungato/Shutterstock