Adidas (OTCMKTS:ADDYY) Shares Gap Down Following Weak Earnings

Key Points

• Adidas shares plunged 16.3%, opening at $85.83 versus the prior close of $103.52, after quarterly earnings fell short of expectations.
• The company reported EPS of $1.22, missing the $1.41 consensus estimate by $0.19; net margin was 5.52% and return on equity was 22.97%.
• Despite the earnings miss, analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $146.02.

Shares of Adidas AG (OTCMKTS:ADDYY - Get Free Report) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $103.52, but opened at $85.83. Adidas shares last traded at $85.03, with a volume of 23,040 shares trading hands.

The company reported $1.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.41 by ($0.19). Adidas had a net margin of 5.52% and a return on equity of 22.97%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. JPMorgan Chase & Co. assumed coverage on shares of Adidas in a research report on Thursday, July 2nd. They issued an "overweight" rating for the company. Piper Sandler reaffirmed an "overweight" rating on shares of Adidas in a research note on Wednesday, July 15th. Zacks Research upgraded Adidas from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Royal Bank Of Canada upgraded Adidas from a "sector perform" rating to an "outperform" rating in a research report on Wednesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Adidas in a research report on Tuesday, June 30th. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Adidas presently has a consensus rating of "Moderate Buy" and an average price target of $146.02.

Institutional Investors Weigh In On Adidas

An institutional investor recently raised its stake in Adidas stock. GAMMA Investing LLC boosted its stake in Adidas AG (OTCMKTS:ADDYY - Free Report) by 53.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,101 shares of the company's stock after purchasing an additional 732 shares during the period. GAMMA Investing LLC's holdings in Adidas were worth $216,000 at the end of the most recent reporting period.

Adidas Stock Down 16.3%

The company has a current ratio of 1.35, a quick ratio of 0.71 and a debt-to-equity ratio of 0.31. The stock has a 50 day simple moving average of $100.03 and a 200 day simple moving average of $90.77. The firm has a market capitalization of $30.95 billion, a PE ratio of 19.08, a PEG ratio of 1.34 and a beta of 1.24.

About Adidas

Adidas AG is a global designer, manufacturer and marketer of athletic footwear, apparel and accessories, headquartered in Herzogenaurach, Germany. Founded by Adolf "Adi" Dassler in 1949, the company has grown into one of the world's leading sportswear brands, offering products for running, soccer, basketball and a wide range of other sports as well as lifestyle and fashion markets.

Adidas's product portfolio includes performance footwear, sports apparel, team uniforms, equipment and accessories sold under the Adidas brand and through various collaborations.

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