Nike Shares Gain 1.6% as Q4 EPS Forecast Dips 40.7%
Nike shares closed at $64.09, up 1.59%, outperforming major indexes. Analysts forecast Q4 EPS of $0.32 (down 40.7% y/y) on $11.29 billion revenue (+0.17% y/y) and full-year EPS of $1.57 (–27.3%) on $46.83 billion sales (+1.1%), with a 40.3 forward P/E.
1. Stock Performance
Nike shares closed at $64.09, a 1.59% increase that exceeded the S&P 500’s 0.77% gain, the Dow’s 0.76% rise and the Nasdaq’s 1.05% advance. Prior to this session, Nike had shed 2.92%, narrower than the Consumer Discretionary sector’s 3.96% drop and the S&P 500’s 0.98% loss.
2. Earnings and Revenue Outlook
For the upcoming quarter, Nike is projected to report EPS of $0.32, a 40.7% decrease year-over-year, on revenue of $11.29 billion, a 0.17% increase. Full-year estimates call for EPS of $1.57 (–27.3% y/y) and revenue of $46.83 billion (+1.12% y/y).
3. Valuation Metrics
Nike trades at a forward P/E of 40.3, versus a 16.05 average in the Shoes and Retail Apparel industry, and carries a PEG ratio of 3.23 compared with the industry’s 1.47. These metrics suggest a premium valuation amid slower earnings growth.