Nike Inc (NYSE:NKE)
To show you what kind of stock market environment we are in here is what happened in Nike developments today. Nike, reported their quarterly earnings after the market closed on Tuesday September 26th, 2017. And not only did they beat earnings expectations but they blew them away.
To think that you can own a superstar sneaker and sports apparel manufacturer stock, earn a hefty dividend of 3.18% per year, see their products worn by so many friends, family and other people on a daily basis who you cross paths with, you yourself enjoy and use the many products they produce and then witness the company beat earnings estimates by wide margins and then experience a share price decline (-3.18%) after they announce earnings would make your head spin or make you scratch your head in utter dismay. And this is exactly what happened in a nutshell.
NKE Numbers
The company reported earnings of +$0.57 per share while estimates had come in at +$0.48 per share. Revenue topped out at 9.07 billion dollars which was slightly higher from the same period last year but did fall below the 9.09 billion estimate that analysts had expected.
Shares closed the regular trading session at $53.70 which was up +$0.47 on the day. However shares closed at $51.99 as of 8 p.m. which was down -$1.71 or down -3.18%. Shares have traded in a 52-week range from a low of $49.01 to a high of $60.53.
Company And Analyst Comments
Nike CEO Mark Parker said in a conference call that revenue in the quarter was driven by Air Max sneakers and that new products under that collection will be released “soon.”
Cowen, one of the company Analysts said in a research note that “consumers no longer [are] looking to build athletic wardrobe and are instead in [a] replacement cycle, leaving industry scrambling to adjust inventory levels, even as stores close.”
“We continue to see risk surrounding Nike’s basketball business as price deflation in the category increases,” Cowen wrote.
Cowen analysts rate Nike stock market perform with a $53 price target, down from $54.
Nike Inc (NYSE:NKE) Charts
The above price chart shows the intraday 5-minute price action on the left and the aftermarket 5 minute price action on the right.. As you can see on the left, shares meandered and went basically sideways for most of the day.
However in the after market, shares were volatile initially- rising on the positive earnings number and then selling off after some comments were made and the earnings report was read.
The above price chart shows Nike going back about 3 months. It is easy to see the upper red resistance line and the lower green support line. After earnings now, it appears that shares will likely penetrate the green support line when they open for trading on Wednesday morning.
Company Profile
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. It offers NIKE brand products in nine categories: running, NIKE basketball, the Jordan brand, football, men’s training, women’s training, action sports, sportswear, and golf.
The company also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, it sells sports apparel; and markets apparel with licensed college and professional team and league logos.
Further, the company sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment under the NIKE brand for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories under the Jumpman trademark; action sports and youth lifestyle apparel and accessories under the Hurley trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron (NYSE:CVX), and Jack Purcell trademarks.
Additionally, it licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks.
The company sells its products to footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts through NIKE-owned retail stores and Internet Websites, mobile applications, independent distributors, and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.