Nike (NKE) Second Quarter Earnings Report Preview: What to Watch For

Sportswear brand Nike (NYSE:NKE) will report earnings tomorrow after the market closes. Here’s what to look for.

Nike beat analyst revenue expectations by 1.1% last quarter, reporting revenue of $12.43 billion, flat year over year. It was a good quarter for the company, with a slight beat to analysts’ operating margin estimates.

Do Nike Sales Affect Earnings? Read our full analysis here, it’s free.

Analysts expect Nike’s revenue to remain flat year-over-year at $12.86 billion this quarter, a slowdown from the 4.8% growth reported in the same quarter last year. Adjusted earnings per share are expected to be $0.84.

Analysts covering the company have broadly reaffirmed their estimates over the last 30 days, suggesting they expect the company to continue its course towards earnings. Over the past two years, Nike has topped Wall Street revenue estimates twice.

Looking at Nike’s competitors in the consumer goods segment, only Carnival has announced results so far. It beat analyst revenue estimates by 1.6%, delivering year-over-year sales growth of 17.7%.

Read our full analysis of Carnival’s earnings performance here.

Investors in the consumer goods segment continued to generate profits, and share prices were unchanged over the past month. Nike is up 2.5% over the same period and is heading toward earnings, with an average analyst price target of $109.4 (versus the current share price of $94.35).

At StockStory, we certainly understand the potential of thematic investing. A variety of winners, from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST), could be identified as promising growth stories with a megatrend driving growth. In that spirit, we’ve identified a relatively invisible, profitable growth stock benefiting from AI developments, available for FREE via this link.