Nike (NKE, $138.99) beats Q3 2021 earnings expectations; but sales hurt by pandemic
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%.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NKE in upward trend: price may jump up because it broke its lower Bollinger Band on August 17, 2026
NKE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 50 cases where NKE's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where NKE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NKE as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NKE turned negative on July 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
NKE moved below its 50-day moving average on July 20, 2026 date and that indicates a change from an upward trend to a downward trend.
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 August 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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: P/B Ratio (4.068) is normal, around the industry mean (2.634). P/E Ratio (19.410) is within average values for comparable stocks, (38.552). NKE's Projected Growth (PEG Ratio) (1.580) is slightly higher than the industry average of (1.072). Dividend Yield (0.040) settles around the average of (0.031) among similar stocks. P/S Ratio (1.301) is also within normal values, averaging (1.796).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. NKE’s price grows at a lower 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 91, placing this stock worse than average.
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General Information
a maker of athletic footwear and apparel
Industry WholesaleDistributors
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