Nic Antaya Contributor/Getty Images
Takeaways
- Nike will report its fiscal third-quarter results after the close of the market on Thursday. This is the second quarter under new CEO Elliott Hill.
- 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 tracks 18 analysts, and half of them rate Nike as a “buy”. Seven analysts give it a “hold” rating while two others give it a “sell” rating. Their average price target of $82 would represent an increase of about 12% over Wednesday’s closing price.
Nike is expected to report a revenue of $11.02 billion for the quarter. This is down from $12.43 million the year before. The earnings per share (EPS), which is the company’s measure of profitability, will likely decline from last year to 28 cents.
Second Report by New CEO During Turnaround Efforts
The report that Nike will release on Thursday is the second since Elliott Hill took over as CEO in October. Nike’s results in the second quarter exceeded estimates and Hill laid out a vision for increasing sales. Analysts soon lowered their target prices, stating that Nike’s turnaround may take longer than expected.
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 marketing and product efforts in recent months for women. 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 over one-quarter of their value over the past 12 months, at $72.99 as of Wednesday's close.
UPDATE—March 19, 2025: This article has been updated since it was first published to reflect more recent analyst estimates and share price values.
