Zacks Research Issues Pessimistic Estimate for NIKE Earnings

Key Points

• Zacks Research lowered NIKE’s Q1 2028 EPS estimate to $0.50 from $0.51 and maintains a “Strong Sell” rating. The broader analyst consensus is “Reduce,” with an average price target of $41.07.
• NIKE’s latest quarter beat earnings expectations at $0.48 per share versus $0.43, but revenue fell 4.3% year over year to $11.21 billion and missed estimates. The stock opened at $37.12, near the lower end of its 12-month range.
• Investors continue to see mixed signals: Jordan is gaining traction in resale markets and India offers long-term growth potential, while declining sales, China weakness, distribution challenges and concerns about dividend sustainability weigh on the turnaround.

NIKE, Inc. (NYSE:NKE - Free Report) - Investment analysts at Zacks Research reduced their Q1 2028 earnings estimates for NIKE in a research report issued to clients and investors on Friday, October 16th. Zacks Research analyst Team now expects that the footwear maker will earn $0.50 per share for the quarter, down from their prior estimate of $0.51. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for NIKE's current full-year earnings is $1.26 per share. Zacks Research also issued estimates for NIKE's Q1 2029 earnings at $0.60 EPS.

A number of other equities analysts have also recently weighed in on NKE. China Renaissance dropped their price target on NIKE from $50.30 to $47.30 and set a "hold" rating on the stock in a research note on Thursday, July 2nd. Guggenheim restated a "buy" rating and set a $50.00 price objective (down from $60.00) on shares of NIKE in a report on Friday, October 2nd. Freedom Broker raised shares of NIKE from a "hold" rating to a "buy" rating and reduced their price objective for the company from $54.00 to $51.00 in a research note on Friday, October 2nd. Evercore reduced their price objective on shares of NIKE from $46.00 to $28.00 in a research note on Monday, September 28th. Finally, BTIG Research decreased their target price on shares of NIKE from $55.00 to $50.00 and set a "buy" rating for the company in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-one have given a Hold rating and ten have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $41.07.

NIKE Stock Down 0.0%

NYSE NKE opened at $37.12 on Monday. NIKE has a 12 month low of $31.97 and a 12 month high of $70.44. The company has a market capitalization of $55.13 billion, a P/E ratio of 17.85, a PEG ratio of 4.19 and a beta of 1.09. The company's 50 day simple moving average is $37.48 and its 200 day simple moving average is $41.56. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.07 and a quick ratio of 1.39.

NIKE (NYSE:NKE - Get Free Report) last posted its earnings results on Thursday, October 1st. The footwear maker reported $0.48 EPS for the quarter, beating the consensus estimate of $0.43 by $0.05. NIKE had a return on equity of 15.94% and a net margin of 6.74%. The firm had revenue of $11.21 billion for the quarter, compared to analysts' expectations of $11.32 billion. During the same period last year, the firm earned $0.49 EPS. The firm's revenue was down 4.3% compared to the same quarter last year. NIKE has set its FY 2027 guidance at 1.150-1.350 EPS.

NIKE Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were issued a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.4%. The ex-dividend date was Tuesday, September 1st. NIKE's payout ratio is 78.85%.

Insider Buying and Selling

In related news, COO Venkatesh Alagirisamy sold 3,671 shares of the business's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $37.59, for a total transaction of $137,992.89. Following the completion of the transaction, the chief operating officer owned 104,862 shares of the company's stock, valued at approximately $3,941,762.58. The trade was a 3.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Amy Montagne sold 4,867 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the sale, the insider directly owned 57,436 shares of the company's stock, valued at $2,415,183.80. This represents a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,974 shares of company stock valued at $600,126 in the last quarter. Company insiders own 1.10% of the company's stock.

Institutional Trading of NIKE

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brown Lisle Cummings Inc. lifted its holdings in shares of NIKE by 27.9% during the third quarter. Brown Lisle Cummings Inc. now owns 26,717 shares of the footwear maker's stock worth $946,000 after purchasing an additional 5,828 shares during the period. Kintegral Advisory LLC increased its holdings in NIKE by 0.6% in the third quarter. Kintegral Advisory LLC now owns 57,698 shares of the footwear maker's stock valued at $2,066,000 after purchasing an additional 326 shares during the period. BFI Infinity Ltd. acquired a new stake in NIKE in the third quarter valued at $255,000. Ellsworth Advisors LLC increased its holdings in NIKE by 5.8% in the third quarter. Ellsworth Advisors LLC now owns 49,190 shares of the footwear maker's stock valued at $1,741,000 after purchasing an additional 2,700 shares during the period. Finally, NFSG Corp increased its holdings in NIKE by 16.6% in the third quarter. NFSG Corp now owns 5,657 shares of the footwear maker's stock valued at $200,000 after purchasing an additional 806 shares during the period. 64.25% of the stock is currently owned by institutional investors.

Key Stories Impacting NIKE

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Jordan is gaining traction in resale markets. Citi-tracked data showed Nike held 72.3% of athletic-footwear resale volume in September, up from August, with the Jordan brand responsible for most of the improvement. This suggests continued consumer demand for key franchises. Jordan is driving Nike's resale volume growth
• Positive Sentiment: India represents a long-term growth opportunity. Nike is expanding its India presence with a new campus as it seeks to diversify growth beyond weaker markets, particularly China. Investors may view the move as a potential structural growth driver, although the payoff is likely several years away. Nike's India campus is a long-term growth bet
• Neutral Sentiment: Investor flows have recently supported the stock. Nike has benefited from a rotation out of expensive technology and artificial-intelligence stocks into beaten-down consumer companies. Unusually high call-option activity also points to speculative interest, but these factors may not reflect improvement in Nike’s underlying fundamentals. Nike gets a lift as traders flee AI stocks
• Negative Sentiment: Wall Street remains cautious about the turnaround. Only about 26% of analysts reportedly rate Nike a Buy, amid concerns about declining global sales, especially in China. Management’s restructuring is intended to reduce costs and accelerate decisions, but it also underscores the depth of the company’s operating problems. Just 26% of Wall Street analysts rate Nike a Buy
• Negative Sentiment: Distribution and dividend concerns add pressure. Reports say Nike has not fully recovered shelf space lost after reducing its Foot Locker relationship. Separately, weakening sales and free cash flow that may not cover the dividend raise questions about the sustainability of Nike’s long record of payout increases. Nike walked away from Foot Locker

NIKE Company Profile

NIKE, Inc is a global athletic footwear, apparel, equipment and accessories company headquartered near Beaverton, Oregon. The company designs, develops, markets and sells products under the Nike, Jordan and Converse brands, serving athletes and consumers across a broad range of sports and lifestyle categories.

NIKE's product portfolio includes athletic and casual footwear, performance and lifestyle apparel, sports equipment, accessories and digital fitness-related offerings. The company distributes its products through company-owned retail stores, digital platforms and wholesale partners, while also operating direct-to-consumer and membership programs.

The company traces its origins to 1964, when Phil Knight and Bill Bowerman founded Blue Ribbon Sports.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.