Oppenheimer Weighs in on Nike Inc’s Q2 2019 Earnings (NKE)

Nike Inc (NYSE:NKE) – Equities researchers at Oppenheimer cut their Q2 2019 earnings per share estimates for shares of Nike in a report issued on Thursday, October 18th. Oppenheimer analyst B. Nagel now expects that the footwear maker will earn $0.45 per share for the quarter, down from their prior estimate of $0.52. Oppenheimer has a “Outperform” rating and a $90.00 price target on the stock. Oppenheimer also issued estimates for Nike’s Q3 2019 earnings at $0.72 EPS, Q4 2019 earnings at $0.79 EPS, FY2019 earnings at $2.63 EPS, Q1 2020 earnings at $0.81 EPS, Q2 2020 earnings at $0.54 EPS, Q3 2020 earnings at $0.84 EPS, Q4 2020 earnings at $0.94 EPS, FY2020 earnings at $3.14 EPS and FY2021 earnings at $3.70 EPS.

Several other research firms also recently weighed in on NKE. Bank of America reiterated a “sell” rating and set a $50.00 price target on shares of Nike in a research note on Friday, September 21st. Stifel Nicolaus increased their price target on Nike from $90.00 to $96.00 and gave the stock a “buy” rating in a research note on Monday, September 24th. Goldman Sachs Group set a $81.00 price target on Nike and gave the stock a “buy” rating in a research note on Thursday, September 20th. Pivotal Research set a $85.00 price target on Nike and gave the stock a “hold” rating in a research note on Friday, September 21st. Finally, Barclays increased their price target on Nike to $100.00 and gave the stock an “overweight” rating in a research note on Friday, September 21st. They noted that the move was a valuation call. Two research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and twenty-four have issued a buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $84.75.

NKE stock opened at $74.21 on Friday. The company has a quick ratio of 1.53, a current ratio of 2.31 and a debt-to-equity ratio of 0.39. The firm has a market cap of $121.46 billion, a PE ratio of 30.67, a PEG ratio of 2.54 and a beta of 0.65. Nike has a fifty-two week low of $52.67 and a fifty-two week high of $86.04.

Nike (NYSE:NKE) last posted its quarterly earnings results on Tuesday, September 25th. The footwear maker reported $0.67 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.04. The company had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.92 billion. Nike had a return on equity of 40.69% and a net margin of 5.57%. The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.57 EPS.

Nike announced that its board has authorized a stock repurchase plan on Thursday, June 28th that allows the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization allows the footwear maker to reacquire up to 12.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

The business also recently disclosed a quarterly dividend, which was paid on Monday, October 1st. Investors of record on Tuesday, September 4th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Friday, August 31st. This represents a $0.80 dividend on an annualized basis and a yield of 1.08%. Nike’s dividend payout ratio (DPR) is 33.06%.

In other Nike news, CFO Andrew Campion sold 2,907 shares of the firm’s stock in a transaction dated Tuesday, July 24th. The stock was sold at an average price of $76.85, for a total value of $223,402.95. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Johnathan A. Rodgers sold 16,000 shares of the firm’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $85.05, for a total value of $1,360,800.00. Following the completion of the sale, the director now directly owns 26,963 shares in the company, valued at approximately $2,293,203.15. The disclosure for this sale can be found here. Insiders have sold a total of 68,648 shares of company stock worth $5,652,227 in the last three months. 3.90% of the stock is currently owned by insiders.

Several large investors have recently added to or reduced their stakes in NKE. Jennison Associates LLC raised its holdings in shares of Nike by 26.5% in the 2nd quarter. Jennison Associates LLC now owns 14,740,623 shares of the footwear maker’s stock valued at $1,174,533,000 after acquiring an additional 3,087,189 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Nike by 4.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 27,940,846 shares of the footwear maker’s stock valued at $2,226,327,000 after acquiring an additional 1,273,548 shares in the last quarter. Millennium Management LLC raised its holdings in shares of Nike by 2,820.1% in the 2nd quarter. Millennium Management LLC now owns 1,169,503 shares of the footwear maker’s stock valued at $93,186,000 after acquiring an additional 1,129,453 shares in the last quarter. LFA Lugano Financial Advisors SA purchased a new stake in shares of Nike in the 2nd quarter valued at about $1,039,000. Finally, Bessemer Group Inc. raised its holdings in shares of Nike by 32.5% in the 2nd quarter. Bessemer Group Inc. now owns 3,830,654 shares of the footwear maker’s stock valued at $305,227,000 after acquiring an additional 940,411 shares in the last quarter. 64.03% of the stock is currently owned by hedge funds and other institutional investors.

About Nike

NIKE, Inc, together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories: running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.

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Earnings History and Estimates for Nike (NYSE:NKE)

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