2022.12.22 JPMorgan Chase published a research report that Nike (NKE. N) Earnings per share for the third quarter were higher than expected and EBIT margin was 11.9. Management raised its fiscal 2023 outlook to a median earnings per share forecast of approximately $3.10. The bank believes that the Group is a leader in the global sports market, diversifying in product categories, geographies and distribution, and believes that its brand momentum in all regions is sustainable, insulating macro market volatility and supporting sustainable revenue growth, which, together with continued gross margin expansion, is expected to drive sustainable mid- to high-double-digit earnings per share. The bank raised its price target from $127 to $128, giving it an “overweight” rating.
Nike stock trading strategy: 2022.12.22 From the technical graphics point of view, affected by the financial report greatly exceeded expectations, the stock price temporarily ended the downtrend, the short-term space has been full, the probability of breaking through again upward is not too high, based on the possible risk of falling stock prices, it is recommended that short-term and medium-term transactions move up the stop loss price to $110, only above $110 to trade and hold, once the downward break, there may be room to make up for the decline, the 60-day moving average is a high probability event, the next short-term game position 60-day moving average. From a fundamental point of view, operating income for the second quarter of fiscal 2023 was US$13.315 billion, market expectations were US$12.6 billion, YoY+17.24, net income attributable to common shareholders was US$1.331 billion, YoY-0.45, EPS was US$0.85, and YoY+2.41. Q2 fiscal quarter with performance proved the ability to operate, the mid-term level of bearish may have been digested, should not be overly bearish, medium and long-term volatility range is expected to be $85-$140, 85 yuan-$95 line is a better medium and long-term entry position.
Historical Forecast Record:
2022.9.30 From the technical chart, affected by the poor financial report, it has plummeted 9 pre-market, and the stock price has once again opened downside, and it is recommended to temporarily avoid the short-term and medium-term and long-term. From a fundamental point of view, Q1 2023 achieved operating income of US$12.687 billion, YoY+3.58, net profit attributable to common shareholders of US$1.468 billion, YoY-21.66, EPS US$0.93. Inventories have risen sharply year-on-year, and the fundamentals have further weakened significantly, it is recommended to use technical indicators as a trading strategy, there is no medium and long-term holding space for the time being, and wait patiently for the stock price to stabilize.
2021.9.24 From the technical chart, the stock price is in the rebound stage after the retracement, in the short term, there is a certain support at $150, it is recommended that short-term funds can participate in a small number of long orders above $150, fast forward and fast out, the current position is not suitable for medium and long-term long holding strategy. From a fundamental point of view, there is a certain premium between the stock price and the company’s performance, and investors should pay attention to the risk of chasing higher. When the stock price falls significantly, consider stop-loss trading.
Stock symbol：NYSE:NKE
Company name：Nike, Inc.
Company website： www.nike.com
Numbers of employees：79100 history data 73300
CEO：John J. Donahoe II
ADDR：One Bowerman Drive Beaverton Oregon
2022.12.20 Operating income for the second quarter of fiscal 2023 was US$13.315 billion, compared to market expectations of US$12.6 billion, YoY+17.24, net income attributable to common shareholders of US$1.331 billion, YoY-0.45, EPS US$0.85, YoY+2.41. Quarterly dividend of $0.34 per share. (Note: GAAP by default, non-GAAP will be stated separately)
Second quarter results summary
Sales revenue was $13.3 billion, up 17% from the previous year, with direct sales of $5.4 billion. Nike brand revenue was $12.7 billion, and Converse revenue was $586 million. Gross margin decreased 300 basis points to 42.9, primarily due to higher price reductions to clear inventory, particularly in North America;
Revenue in Greater China was $1.79 billion in the fiscal second quarter, versus $1.81 billion. Gross margin was 42.9, compared to market estimates of 42.1.
consolidated statements of income
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://about.nike.com/en/newsroom and follow @NIKE.