Sneaker giant Nike reported third-quarter earnings that topped analysts’ expectations. However, sales was hurt by port congestion in the U.S. and store closures in Europe.
Adjusted earnings for the quarter came in at 90 cents per share, compared to 76 cents expected by analysts polled by Refinitiv. Revenue increased to $10.36 billion from the year-ago quarter’s $10.1 billion; analysts forecast $11.02 billion.
Revenue in North America fell -10% year over year, hurt by shipment delays.
In Europe, Middle East and Africa region, sales at its physical retail stores decreased due to pandemic-related restrictions. However, online sales in those markets grew 60% in the latest period. According to Nike, about 60% of its stores in the region are open today, while some operate on reduced hours.
In Greater China, sales rose +51%. This is probably due to the region’s relatively quick recovery path from the pandemic.
For fiscal 2021, Nike projects revenue to rise by a low-to-mid-teens percentage from the prior year. Analysts had been expecting revenue growth of 15.9%, according to Refinitiv.
Nike expects fourth-quarter sales to grow +75% year over year, compared to analysts forecast of +64.3%.
The RSI Oscillator for NKE moved out of oversold territory on April 11, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 33 similar instances when the indicator left oversold territory. In of the 33 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on May 17, 2024. You may want to consider a long position or call options on NKE as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NKE just turned positive on May 17, 2024. Looking at past instances where NKE's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NKE advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
NKE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NKE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NKE entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NKE's P/B Ratio (9.862) is slightly higher than the industry average of (3.484). P/E Ratio (27.224) is within average values for comparable stocks, (28.646). Projected Growth (PEG Ratio) (2.032) is also within normal values, averaging (1.937). Dividend Yield (0.015) settles around the average of (0.048) among similar stocks. P/S Ratio (2.762) is also within normal values, averaging (1.925).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NKE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NKE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of athletic footwear and apparel
Industry ApparelFootwear