Nike’s (NKE) fiscal Q2 results were “solid” overall, though its full-year guidance disappointed, Morgan Stanley said Friday.
Late Thursday, the athletic footwear and apparel maker reported that its fiscal Q2 per-share earnings rose to $1.03 from $0.85 a year earlier, while revenue advanced 1% to $13.39 billion.
The report showed the “resilience” of the company’s profitability, Morgan Stanley said in a note. “While 2Q revenue growth remained uninspiring, it came in no worse than market expectations.”
The firm cut its price target on the Nike stock to $124 from $132 while keeping its overweight rating.
Nike lowered its fiscal year revenue outlook to 1% growth from its previous expectations of mid-single-digit percentage growth.
“Although investors were braced for lower [2024] revenue guidance given the recent branded peer trend/results, the magnitude of [Nike’s] cut surprised to the downside,” Morgan Stanley said in the note.