NIKE (NYSE:NKE) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• NIKE reported quarterly EPS of $0.48, beating analyst expectations of $0.44 by $0.04, and updated fiscal 2027 EPS guidance to a range of $1.15 to $1.35.
• Shares fell to $35.05, near their 52-week low, amid concerns about weak demand, margin pressure and a slower recovery. Analysts maintain a consensus “Hold” rating with an average price target of $46.62.
• NIKE declared a quarterly dividend of $0.41 per share, equivalent to $1.64 annually and a 4.7% yield.

NIKE (NYSE:NKE - Get Free Report) released its earnings results on Thursday. The footwear maker reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.04, Zacks reports. NIKE had a net margin of 6.70% and a return on equity of 16.54%. NIKE updated its FY 2027 guidance to 1.150-1.350 EPS.

NIKE Price Performance

Shares of NIKE stock traded down $0.35 during trading hours on Thursday, reaching $35.05. The company's stock had a trading volume of 83,947,967 shares, compared to its average volume of 23,248,330. The firm has a 50 day moving average price of $39.16 and a 200-day moving average price of $43.07. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.96 and a quick ratio of 1.36. The stock has a market cap of $51.99 billion, a P/E ratio of 16.77, a P/E/G ratio of 2.02 and a beta of 1.10. NIKE has a one year low of $35.02 and a one year high of $76.97.

NIKE Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend is Tuesday, September 1st. NIKE's dividend payout ratio (DPR) is presently 78.47%.

Analyst Ratings Changes

A number of research analysts recently weighed in on NKE shares. Deutsche Bank Aktiengesellschaft lowered their target price on shares of NIKE from $45.00 to $37.00 and set a "hold" rating on the stock in a research note on Monday. BTIG Research reissued a "buy" rating and set a $55.00 price target on shares of NIKE in a report on Wednesday, September 23rd. BMO Capital Markets assumed coverage on NIKE in a research report on Tuesday, September 8th. They issued an "underperform" rating and a $30.00 price objective on the stock. Jefferies Financial Group reaffirmed a "buy" rating on shares of NIKE in a research note on Monday. Finally, Bank of America reiterated an "underperform" rating and set a $30.00 target price (down from $47.00) on shares of NIKE in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twenty-one have issued a Hold rating and seven have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $46.62.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Nike’s new Caitlin Clark signature shoe, the Caitlin 1, was nearly sold out less than two hours after launch at a $140 retail price. The strong debut could support demand, brand engagement and Nike’s strategy of building momentum through key athlete partnerships. Nike's new Caitlin Clark shoes are already almost sold out
• Positive Sentiment: Record short interest—estimated at roughly 87 million shares—creates the possibility of a sharp short-covering rally if Nike delivers an earnings beat or offers more encouraging guidance. NKE Ticks Higher Ahead Of Q1 As Short Interest Hits Record 87M Shares
• Neutral Sentiment: Nike is giving its China business greater control over product decisions and distribution as it attempts to respond more quickly to local competitors. The move could improve execution, but it also highlights the severity of Nike’s falling China sales and competitive challenges. Nike Lost China to Local Brands, Now It’s Trying to Think Like One
• Negative Sentiment: Analysts expect another quarter of declining sales, with consensus estimates of approximately $0.44 in earnings per share and $11.34 billion in revenue. Investors are also watching for conservative guidance, as Nike previously indicated that sales could be flat during the first half of the fiscal year. Nike is set to report earnings after the bell
• Negative Sentiment: Bank of America warned that weak demand, margin pressure and a slower-than-expected recovery could push NKE lower, while other analysts have reduced price targets ahead of the report. Options markets imply substantial post-earnings volatility, with traders preparing for a potential move toward a 13-year low. Why Bank of America Is Betting That Nike Stock Will Fall from Here

Insider Buying and Selling

In other NIKE news, insider Amy Montagne sold 4,867 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $42.05, for a total transaction of $204,657.35. Following the sale, the insider directly owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Matthew Friend sold 2,463 shares of NIKE stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $41.60, for a total value of $102,460.80. Following the completion of the transaction, the chief financial officer owned 82,165 shares of the company's stock, valued at approximately $3,418,064. This trade represents a 2.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,974 shares of company stock worth $600,126. Insiders own 1.10% of the company's stock.

NIKE Company Profile

NIKE, Inc is a global sportswear company that designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and related services. Its products are marketed under the NIKE, Jordan and Converse brands and are used across a broad range of sports and lifestyle activities, including running, basketball, football, training and outdoor pursuits.

The company distributes its products through a combination of wholesale partners, NIKE-owned retail stores and digital platforms.

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