Nike Trampled After Q1 Earnings Report

Lucy Hill
September 28, 2017

The Beaverton, Oregon-based company reported strong revenue growth in worldwide markets even though North America sales declined 3% year over year.

Jacobson & Schmitt Advisors Llc, which manages about $137.53 million and $147.91M US Long portfolio, decreased its stake in Amerisourcebergen Corp (NYSE:ABC) by 16,614 shares to 47,103 shares, valued at $4.45 million in 2017Q2, according to the filing. The fund owned 87,930 shares of the footwear maker's stock after buying an additional 10,400 shares during the quarter. Nike Inc. has $156.0 highest and $42.0 lowest target. Products Ptnrs has invested 0.02% of its portfolio in Nike Inc (NYSE:NKE). Hartford Investment Management Co. now owns 360,722 shares of the footwear maker's stock valued at $21,283,000 after acquiring an additional 18,759 shares during the period. (NKE) on Tuesday reported fiscal first-quarter profit of $950 million. OppenheimerFunds Inc. now owns 5,349,793 shares of the footwear maker's stock valued at $298,145,000 after purchasing an additional 5,274,656 shares in the last quarter. Boothbay Fund Limited Liability invested in 13,406 shares. Wedbush analyst C. Svezia now forecasts that the footwear maker will post earnings per share of $2.33 for the year, down from their prior forecast of $2.38. Glen Harbor Capital Management LLC lifted its holdings in shares of Nike by 17.9% during the 1st quarter.

Shares of the Dow component were trading down 3.7% at US$51.71 after the bell on Tuesday. The stock's 50 day moving average is $55.57 and its 200 day moving average is $55.39. The stock has a market cap of $91.10 billion, a P/E ratio of 22.99 and a beta of 0.44. Peak6 Invests LP has invested 0.02% in Nike Inc (NYSE:NKE).

Nike NKE, -3.15% reported earnings per share of 57 cents, beating the FactSet consensus of 48 cents, but down from 73 cents a year ago. The footwear maker reported $0.68 earnings per share for the quarter, beating the consensus estimate of $0.53 by $0.15.

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Jefferies analyst Randal Konik lowered his price target for Nike shares to $48 from $49, saying the company's "valuation remains high" and that "wholesale exposure problems remain". Nike had a net margin of 11.60% and a return on equity of 31.70%. Nike's revenue for the quarter was up.1% compared to the same quarter previous year. Sales were $9.07 billion, almost flat with $9.06 billion past year, and just below the $9.09 billion FactSet consensus.

The revenues for the Nike brand alone increased by 2% to US$8.6 billion, driven by growth in Greater China, Asia Pacific and Latin America (APLA), and Europe, Middle East and Africa (EMEA). Its up 0.51, from 1.3 in 2017Q1. As per Thursday, March 23, the company rating was maintained by FBR Capital. Nike's payout ratio is presently 28.69%.

A number of analysts make a point of attributing the earnings beat to the timing of selling, general and administrative (SG&A) expenses, and call out the softness in North America. J P Morgan Chase & Co set a $54.00 target price on shares of Nike and gave the stock a "neutral" rating in a research report on Wednesday. Telsey Advisory Group cut their price target on Nike from $66.00 to $62.00 and set an "outperform" rating for the company in a research note on Thursday, June 22nd. Stifel Nicolaus maintained the stock with "Buy" rating in Wednesday, June 29 report. Three equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating and twenty-one have issued a buy rating to the stock. Citigroup maintained the stock with "Buy" rating in Friday, September 25 report. The stock was sold at an average price of $59.40, for a total value of $339,886.80. Following the sale, the director now directly owns 25,660 shares in the company, valued at approximately $1,371,527. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The insider SPRUNK ERIC D sold 50,000 shares worth $2.85M. The stock was sold at an average price of $58.10, for a total transaction of $1,630,983.20.

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