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Takeaways
- Nike will announce its fiscal third quarter earnings after the closing of the markets on Thursday. It is the second time that CEO Elliott Hill has reported Nike’s earnings.
- Analysts are more bullish about the stock than bearish.
- Nike's second-quarter results topped estimates, but analysts warned the company's turnaround effort could take time.
Nike (NKE), the apparel maker, is expected to report its earnings for the third fiscal quarter of 2025 after Thursday’s closing bell. Analysts are more bullish than negative on the stock.
Visible Alpha has tracked 18 analysts who rate Nike stock in half as “buy”, with seven “holds”, and two “sells”. Their average target price of $82 represents a 14% premium over Friday’s close.
Nike is expected to report a revenue of $11.02 billion for the quarter. This is down from $12.43 million the year before. Earnings per Share (EPS) are expected to drop from $12.43 billion to $11.02 billion.
Second Report under New CEO Amid Turnaround efforts
The report on Thursday will be the second for Nike under the new CEO Elliott Hill who took over in October. Nike’s second quarter results were better than expected, and Hill presented his vision to improve sales. A number of analysts lowered their price target, however, as they warned Nike’s turnaround may take longer than anticipated.
Morgan Stanley analysts said recently they see room for "slight outperformance" in third-quarter EPS and projections for the fourth quarter. However, they still "prefer to stay on the sidelines" on the stock, considering an uncertain growth trajectory amid the company's strategic revamp.
Nike has increased its marketing efforts and product offerings for women over the past few months. The company announced that it would be collaborating with Kim Kardashian and SKIMS to create a new product line. It also aired an advertisement during the Super Bowl highlighting prominent female sportspeople.
Nike shares have lost 30% of their value in the last 12 months. They closed the week at just under $72.
