NIKE (NYSE:NKE) Releases Earnings Results, Beats Expectations By $0.59 EPS

Key Points

• NIKE beat earnings expectations for the quarter, reporting $0.72 EPS versus the $0.13 consensus estimate, while revenue came in at $10.97 billion, slightly above forecasts.
• The stock fell to about $41.08 after the report, near its 52-week low of $40, even as trading volume surged well above average.
• The article highlights a still-cautious outlook, with several analysts cutting targets or estimates, though some investors remain optimistic about a possible turnaround if margins and demand improve.

NIKE (NYSE:NKE - Get Free Report) posted its earnings results on Tuesday. The footwear maker reported $0.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.59, FiscalAI reports. The company had revenue of $10.97 billion during the quarter, compared to analysts' expectations of $10.85 billion. NIKE had a net margin of 4.84% and a return on equity of 16.41%.

NIKE Price Performance

NYSE NKE traded down $0.40 on Tuesday, hitting $41.08. 49,097,643 shares of the company's stock were exchanged, compared to its average volume of 20,524,809. The stock has a 50-day moving average of $44.11 and a 200-day moving average of $53.74. The stock has a market cap of $60.84 billion, a price-to-earnings ratio of 27.21, a P/E/G ratio of 1.77 and a beta of 1.12. NIKE has a 52 week low of $40.00 and a 52 week high of $80.17. The company has a current ratio of 2.14, a quick ratio of 1.45 and a debt-to-equity ratio of 0.50.

NIKE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.0%. The ex-dividend date is Monday, June 1st. NIKE's payout ratio is currently 108.61%.

More NIKE News

Here are the key news stories impacting NIKE this week:

• Positive Sentiment: Some investors are still betting Nike’s turnaround can work, with bullish commentary pointing to the company’s brand strength, premium pricing strategy, and opportunities to regain momentum if margins and demand improve.
• Positive Sentiment: Analysts expect Nike to eventually benefit from gross margin recovery later this year, which could support a rebound if the company shows signs that inventory and pricing trends are stabilizing.
• Neutral Sentiment: NIKE is scheduled to report fiscal Q4 results after the close, and consensus calls for EPS of about $0.13 on revenue of roughly $10.86 billion; the report itself is the biggest near-term catalyst. Article Title
• Neutral Sentiment: Retail traders appear more constructive than some institutional analysts, but the stock is still trading like a turnaround story and remains highly sensitive to any surprise in guidance or commentary. Article Title
• Negative Sentiment: JPMorgan lowered its price target on Nike to $47 and kept a neutral rating, reflecting ongoing skepticism about the pace of a recovery.
• Negative Sentiment: KeyCorp also cut its earnings estimates for both Q4 and FY2027, signaling that expectations are still moving lower ahead of the print.
• Negative Sentiment: Recent articles highlighted continued concerns about declining profits, weak China demand, and market-share losses, reinforcing the market’s cautious stance on the stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on NKE. Zacks Research downgraded shares of NIKE from a "hold" rating to a "strong sell" rating in a research report on Monday, June 1st. Bank of America reaffirmed a "neutral" rating and issued a $55.00 target price (down from $73.00) on shares of NIKE in a research report on Wednesday, April 1st. Sanford C. Bernstein reissued a "buy" rating on shares of NIKE in a report on Wednesday, June 24th. Citigroup restated a "neutral" rating on shares of NIKE in a research note on Wednesday, June 24th. Finally, Barclays decreased their price objective on NIKE from $73.00 to $67.00 and set an "overweight" rating on the stock in a report on Wednesday, April 1st. Fourteen investment analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $58.86.

Insider Activity at NIKE

In other NIKE news, CEO Elliott Hill acquired 23,660 shares of the company's stock in a transaction that occurred on Monday, April 13th. The stock was acquired at an average cost of $42.27 per share, for a total transaction of $1,000,108.20. Following the transaction, the chief executive officer directly owned 265,247 shares in the company, valued at $11,211,990.69. This represents a 9.79% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Timothy D. Cook bought 25,000 shares of the firm's stock in a transaction on Friday, April 10th. The stock was acquired at an average price of $42.43 per share, for a total transaction of $1,060,750.00. Following the transaction, the director owned 130,480 shares of the company's stock, valued at approximately $5,536,266.40. The trade was a 23.70% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 64,441 shares of company stock worth $2,734,204 in the last three months. Insiders own 0.80% of the company's stock.

Institutional Trading of NIKE

A number of hedge funds have recently added to or reduced their stakes in NKE. Harris Associates L P lifted its stake in shares of NIKE by 72.3% in the 4th quarter. Harris Associates L P now owns 14,956,882 shares of the footwear maker's stock valued at $952,903,000 after acquiring an additional 6,277,987 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of NIKE by 6.4% during the 4th quarter. Invesco Ltd. now owns 13,366,254 shares of the footwear maker's stock valued at $851,564,000 after acquiring an additional 804,920 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in NIKE by 2.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 10,451,561 shares of the footwear maker's stock worth $665,870,000 after acquiring an additional 267,882 shares during the last quarter. Viking Global Investors LP increased its holdings in NIKE by 29.1% in the 3rd quarter. Viking Global Investors LP now owns 8,996,579 shares of the footwear maker's stock worth $627,331,000 after purchasing an additional 2,029,381 shares in the last quarter. Finally, Loomis Sayles & Co. L P increased its holdings in NIKE by 21.0% in the 4th quarter. Loomis Sayles & Co. L P now owns 7,963,782 shares of the footwear maker's stock worth $507,373,000 after purchasing an additional 1,380,721 shares in the last quarter. Institutional investors and hedge funds own 64.25% of the company's stock.

About NIKE

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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