Shares of Nike (NKE - Free Report) slipped 1.5% during regular trading hours Monday just one day before the company is scheduled to release its fiscal Q1 financial results. The decline goes against Nike’s impressive 2018 run, so let’s see what to expect from Nike after the closing bell Tuesday.
Nike has been one of the Dow’s top performers this year, with its roughly 35% surge outpacing Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) . Much of the recent momentum stems from the sportswear giant’s strong fourth quarter performance that saw it return to growth in North America and expand it Greater Chine. Nike, like other retailers, has made a significant direct-to-consumer push through its own apps, along with partnerships with Amazon (AMZN - Free Report) , Chinese e-commerce power JD.Com (JD - Free Report) , and even Facebook .
Nike’s growth in Europe and China outpaced rival Adidas’ (ADDYY - Free Report) expansion in those two vital markets last quarter. The company is still the largest sportswear company in the U.S. and will continue to sponsor both the NFL and the NBA. The Oregon-based firm’s growth in athleisure has also helped it compete against Lululemon (LULU - Free Report) and Gap (GPS - Free Report) .
Outlook
Moving on, our current Zacks Consensus Estimate is calling for Nike’s Q1 revenues to jump by 8.9% to hit $9.88 billion. The sportswear powerhouse is also expected to see its North American revenues pop by roughly 3% hit $4.047 billion, based on our current NFM estimates.
Meanwhile, Nike’s adjusted quarterly earnings are expected to jump by 8.8% to $0.62 per share. But, we still need to know how likely it is that Nike tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to help us find out. Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Nike currently sports an earnings ESP of -0.22% and a Zacks Rank #3 (Hold). Therefore, our model is inconclusive. However, Nike has topped our quarterly earnings estimates for almost five straight years. Investors should note that NKE stock will likely trade based on its e-commerce and North American performance in the short-term.
Nike is scheduled to report its quarterly financial results after the close of regular trading on Tuesday, September 25.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of Nike (NKE - Free Report) slipped 1.5% during regular trading hours Monday just one day before the company is scheduled to release its fiscal Q1 financial results. The decline goes against Nike’s impressive 2018 run, so let’s see what to expect from Nike after the closing bell Tuesday.
Nike has been one of the Dow’s top performers this year, with its roughly 35% surge outpacing Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) . Much of the recent momentum stems from the sportswear giant’s strong fourth quarter performance that saw it return to growth in North America and expand it Greater Chine. Nike, like other retailers, has made a significant direct-to-consumer push through its own apps, along with partnerships with Amazon (AMZN - Free Report) , Chinese e-commerce power JD.Com (JD - Free Report) , and even Facebook .
Nike’s growth in Europe and China outpaced rival Adidas’ (ADDYY - Free Report) expansion in those two vital markets last quarter. The company is still the largest sportswear company in the U.S. and will continue to sponsor both the NFL and the NBA. The Oregon-based firm’s growth in athleisure has also helped it compete against Lululemon (LULU - Free Report) and Gap (GPS - Free Report) .
Outlook
Moving on, our current Zacks Consensus Estimate is calling for Nike’s Q1 revenues to jump by 8.9% to hit $9.88 billion. The sportswear powerhouse is also expected to see its North American revenues pop by roughly 3% hit $4.047 billion, based on our current NFM estimates.
Meanwhile, Nike’s adjusted quarterly earnings are expected to jump by 8.8% to $0.62 per share. But, we still need to know how likely it is that Nike tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to help us find out. Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Nike currently sports an earnings ESP of -0.22% and a Zacks Rank #3 (Hold). Therefore, our model is inconclusive. However, Nike has topped our quarterly earnings estimates for almost five straight years. Investors should note that NKE stock will likely trade based on its e-commerce and North American performance in the short-term.
Nike is scheduled to report its quarterly financial results after the close of regular trading on Tuesday, September 25.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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