What Analysts Think of Nike's Stock Ahead of Earnings
Key Takeaways
Nike (
NKE
) is set to report fiscal second-quarter earnings after the market closes Thursday, its first quarterly results
since its new CEO
, company veteran Elliott Hill, took over in October.
Analysts are mostly bullish on Nike's stock, with 10 analysts tracked by Visible Alpha
rating it as a "buy,"
nine analysts with "holds" and one "sell." With an average
price target
near $89, analysts expect Nike to rise about 15% from Friday's close—though that would still be below the nearly $109 level where it started the year.
Nike is projected to report $12.18 billion in
revenue
for the second quarter of fiscal 2025, a 9% decline from the same time last year, according to estimates compiled by Visible Alpha. The apparel maker is expected to post
net income
of $977.7 million, a decline of nearly 40% from $1.6 billion a year ago.
First Quarter Since CEO Hill Took The Helm
Hill took over the top job in October. Nike is expected to offer new guidance for the fiscal year and set a new date for its annual investor day when it reports in Thursday's earnings. The company suspended its outlook and postponed the investor event initially scheduled for November
when it reported first quarter
results, as Hill was weeks away from assuming the role.
Nike's stock has slid as sales have declined and it has looked to cut costs
over the past year
. Several analysts
have applauded
the return of Hill, a Nike veteran, to the company, saying it could boost Nike's turnaround effort.
The company has
faced growing competition
from smaller brands both domestically and in other vital markets like China, and
said in recent quarters
that it plans to shift its product lineup to focus more on new products and ideas.
Nike stock, which slipped a bit less than 1% on Friday, is down nearly 30% this year so far.