Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into what investors should expect from Nike’s NKE Q4 fiscal 2019 financial results that are due out Thursday. This includes a breakdown of Nike’s key North American and Greater China segments and much more.
Nike stock fell 1.46% on Monday and was down 1.62% through morning trading Tuesday. Shares of NKE now hover at around $83.14, which marks over a 6% downturn from their 52-week intraday high of $90.00 per share. Overall, Nike stock is up roughly 12% so far this year, which comes in below the Apparel Market Average and the S&P 500, as well as peers Lululemon LULU, Adidas ADDYY, and Under Armour UAA. Nike’s valuation picture also appears just a tad bit stretched at the moment.
Nike is coming off a better-than-projected third quarter. However, executives said they expect low-single-digit revenue growth in Q4. The uncertainty of the U.S.-China trade war also looms over the apparel and footwear industry.
Despite some of these worries, Nike’s overall outlook appears strong over the long run as it expands its digital and direct-to-consumer push in the Amazon AMZN age, which includes its own apps as well as growth across platforms such as Instagram FB. With that said, the sportswear giant has not abandoned its wholesale business altogether, it has instead focused on more measured partnerships with the likes of Foot Locker FL and Dick’s Sporting Goods DKS. Most importantly, Nike has continued to grow its reach around the globe through the mixture of sports and fashion.
Looking ahead, our Zacks Consensus Estimates call for the company’s quarterly revenue and earnings estimates to come in below Q3’s expansion. Therefore, Nike’s North American, Greater China, and digital segments will likely grab even more attention from Wall Street Thursday.
Nike is due to release its Q4 fiscal 2019 earnings results after the closing bell on Thursday, June 27. So, make sure to head back to Zacks for more on the company’s actual metrics and 2020 guidance.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Facebook, Inc. (FB) : Free Stock Analysis Report Foot Locker, Inc. (FL) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report Under Armour, Inc. (UAA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research