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Tag: NKE

  • Nike, Inc. (NKE) stock Surges After Hours on a Beat Fiscal 2022 Q3 Earnings Report

    On March 21, Nike, Inc. (NKE) declared its financial results for the third quarter of fiscal 2022, which ended on February 28, 2022. Consequently, the stock rebounded and surged up in the after-hours on Monday.

    Source: Bader Martin

    During the regular session, the stock fluctuated between a high of $132.31 and a low of $128.62. The stock closed the session in the red with a loss of 0.80% at a value of $130.19 per share. The volume of the shares exchanged during the session remained above the average at 14.39 million. Following the earnings report, the stock rebounded to increase by 5.30% or $6.90 in the after hours. Hence, NKE was trading at a price of $137.09 per share in the after-hours on Monday, while 3.1 million shares were exchanged.

    The athletic footwear and apparel giant, Nike, Inc. has a market capitalization of $207.53 billion currently. The company’s 1.28 billion outstanding shares have increased by 10.73% in the past five days while losing 21.89% year to date.

    Earnings Anticipation

    As soon as the company announced its earnings date back in February 2022, numerous reports about the expected decline in sales started circulating in the market. The reports stated many reasons for the expected decline in sales for 2022 including political instability, Covid-19’s resurgence, Russia-Ukraine conflict, and supply chain constraints among others.

    More and more brokerages and analysts kept on cutting down NKE’s price target over the past few weeks. With the escalating lockdowns due to covid-19 in China and supply chain constraints, the sportswear giant’s earnings were expected to decline. But, the further addition of the giant closing down its stores and online business in Russia to boycott the invasion added a further fear factor.

    Analysts were expecting earnings of $0.71 per share on revenue of $10.6 billion for the quarter. The earnings expectations represent a decline of 21.2% YOY while sales show an increase of 2.2%.

    NKE’s Q3 Fiscal 2022 Results

    Despite so many headwinds, the company released a beat earnings report for the quarter.

    For fiscal Q3 2022, the company posted revenues of $10.9 billion with an increase of 5% YOY and 8% YOY on a currency-neutral basis.

    Moreover, the gross margin also reported an increase to 46.6% with 100 basis points YOY for the quarter.

    Furthermore, NKE had a net income of $1.4 billion in fiscal Q3 2022, which shows a YOY decline of 4%. Thus, the diluted earnings per share for the quarter were $0.87.

    The company ended the quarter with cash, cash equivalents, and short-term investments of $13.5 billion with an increase of $939 million from last year.

  • Here is why NIKE Inc. (NKE) stock went up on Thursday after the recent announcement?

    NIKE Inc. (NKE) shares gained 14.10% in after-hours on Thursday, June 24, 2021, and closed the day at $152.44 per share. Earlier, NKE’s stock gained 0.38% to close Thursday’s session at $133.60 per share. NKE shares have risen 33.49% over the last 12 months, and they have moved up 3.63% in the past week. Over the past three months, the stock has gained 3.86%, while over the past six months, it has declined 6.21%.

    Let’s see what are the latest news and developments about NIKE?

    Latest financial results announcement

    On June 24, 2021, NIKE, Inc announced its financial results for its fiscal 2021 fourth quarter and full-year ended May 31, 2021.

    Q4 2021 financial highlights

    • Nike earned a revenue of$12.3 billion for Q4 2021 compared to $6.31 billion for Q4 2020.
    • The gross margin was 8 percent for Q4 2021 compared to 37.3% in Q4 2020.
    • Selling and administrative expenses were $3.74 billion for Q4 20201 compared to $3.19 billion in Q4 2020.
    • For Q4 2021, net income was $1.5 billion, and diluted earnings per share were $0.93 compared to a net loss for the fourth quarter of 2020 of $790 million and a net loss per share of $0.51.

    FY2021 financial highlights

    • NIKE reported revenue of$44.5 billion for FY 2021 compared to $37.4 billion for FY 2020.
    • The gross margin was 8 percent for FY 2021 compared to 43.4% for FY 2020.
    • Selling and administrative expenses were $13.03 billion compared to $13.13 billion for FY 2020.
    • Nike net income was $5.7 billion and diluted earnings per share were $3.56 for FY 2021 compared to $2.54 billion and diluted earnings per share was $1.60 for FY 2020.
    • As of May 31, 2021, Nike had cash and equivalents and short-term investments of $13.5 billion.

    New Space Jam gear

    On June 9, 2021, Nike launched new Space Jam gear. The footwear introduces a new generation of fans to the world of Looney Tunes, featuring colourways and graphic treatments that highlight different characters.

    New customizable Pride collection

    On June 5, 2021, Nike introduced its 2021 Be True collection that puts sport and radical inclusivity together.

    The new customizable collection is supporting more than 20 organizations advancing the LGBTQIA+ community, with some grants administered by the Charities Aid Foundation of America.

    Dividend declaration

    On June 5, 2021, the Board of Directors of NIKE declared a quarterly cash dividend of $0.275 per share on the company’s outstanding Class A and Class B Common Stock payable on July 1, 2021, to shareholders of record at the close of business June 1, 2021.

    Conclusion

    Well, the much-improved financial results announcement was the reason behind its gains on Thursday and NKE can continue to surge on the last day of the week as well.

  • Top Cyclical Stocks to Watch For in 2021

    Top Cyclical Stocks to Watch For in 2021

    Cyclical stocks’ future seems bright with Joe Biden joining the prime seat in Washington. 

    The business situation has improved a lot since the second half of 2020. Moreover, with Joe Biden sworn as the new president of the United States, it is expected the economic situation will get better. The cyclical stocks rely upon the macroeconomic factors or systemic changes in the overall economy. That’s why they are called cyclical as they follow the cycles of an economy.

    Most of the cyclical stocks are based on firms that sell consumer discretionary items—where consumers purchasing increases during a booming economy and decreases during a recession period.

    In recent times, cyclical stocks have been on investors’ radar. Logically, most of the cyclical stocks had bad times during the pandemic, but we are eyeing better times with the new presidency in the office. For instance, Nike stock has done great over time and has shown the potential to rise back strongly. So, there are some notable stocks in the segment to watch for this year. Let’s have a look at the top 3 cyclical stocks in the market at the moment.

    Boeing (BA)

    The Boeing Company (BA) that manufactures and produces the magnificent Boeing Commercial Aircrafts has had bad times over the past year or so. After the two big Boeing crashes the company has been under regulatory radar and was working within limits. And, to add to the woes the pandemic badly affected the company.

    However, the company has started to regain its strength in recent times. The restart of the Boeing737 Max in late 2020 “marks a turning point” toward the company’s financial recovery. The Aerospace guru, Andrew Gollan has also upgraded Boeing from Sell to Hold and raised the price target $150 to $215.

    However, it is going to be a long hard battle for the company to come out of hefty debts and continue with financial freedom. Gollan expects that the company will pay $8 billion of outstanding cash costs this year. With the Max delivers underway, it will help the company to restore financial stability and return the debt.

    Potentially, in 2022, the company would be in a better financial position. Moreover, Boeing just announced that it will start delivering commercial airplanes with the ability to fly on 100% biofuel by the end of the decade. If the company works on this goal with a high success rate then in the long-term things will get bigger for Boeing.

    In the meanwhile, Boeing (BA) stock can make movements that can signal investors to a buy point. So, Boeing’s stock is one to keep an eye on in 2021.

    Crocs (CROX)

    Crocs (CROX) is another consumer cyclical stock that is worth looking forward to. The Colorado-based company is the sole manufacturer of the Crocs brand foam clogs.

    On Jan 20, the company upgraded its Q4 and 2020 revenues. Moreover, Crocs has released a higher outlook for 2021. The company expects its business to continue growth with strong momentum. Also, the incline in online sales is a big reason why Crocs is expecting higher sales this year.

    The company anticipates Q4 revenues to rise by 55% to $410 million compared to the prior updated growth of 30%. While for the full-year 2020, the company expects the revenue to cross $1,381 million—almost 12% growth year-over-year. For the 2021 outlook, Crocs has forecasted revenues to grow between 20% and 25%.

    Overall Crocs (CROX) is ready for strong growth and accelerated business this year. So, it one key stock in the segment to watch for in 2021.

    Nike (NKE)

    Nike (NKE) is one of the leading shoe brands and produces other apparel and equipment. The stock price has soared over 40% since the start of 2020. The overall business of Nike was impacted by the pandemic, but the company kept on fighting with decent sales.

    In fiscal 2020, the digital sales increased by 47% with all geographies growing strong double-digits. As the online shopping trend is growing, online sales are expected to grow for Nike in the coming years.

    In the pre-COVID phase, the company added around 70 million new members to its ecosystem from all over the world. Nike’s share price may be overvalued but it still has much potential to make bull runs this year—as the momentum is on its side.

    Nike is well-positioned cyclical stocks and the company knows to work in different circumstances. This is proven with its steady growth as the company reported a 4% increase in revenue for the 6-months of FY 2021. While the net income jumped up to 12% year-over-year. So, Nike (NKE) stock is a decent stock to keep in your books heading forward.

  • Early Morning Vibes: 3 Growth Stocks To Invest In Right Now

    Early Morning Vibes: 3 Growth Stocks To Invest In Right Now

    US stock indices hit new highs on Thursday. Investors are delighted with signs of progress in agreeing on a new program of state aid to the economy. These stimulus measures should support the economy during a potential slowdown in growth during the winter season.
     

    As a result of trading, the S & P 500 rose 21.31 points, or 0.6%, to 3722.48 points. The Dow Jones Industrial Average rose 148.83 points, or 0.5%, to 30303.37 points. The Nasdaq Composite rose 106.56 points, or 0.8%, to 12,764.75 points.
     

    Economic Update
     

    Congress leaders on Wednesday moved closer to agreeing on a roughly $ 900 billion bailout program that would include another round of direct payments to households. The congressmen could not come to a compromise for several months. The fact that they are close to an agreement should cheer Americans up during the difficult period of the pandemic: although the vaccine has begun to spread in the US, hospital admissions remain at a record.
     

    Most investors are confident that the economy needs a new stimulus program to hold out until the end of winter. Mass vaccinations should help limit the spread of the virus in 2021. The increase in the number of infections affected consumer confidence and retail sales. In addition, some states have introduced new restrictions on the operation of companies.
     

    US labor market data today showed that the economy is facing obstacles. Initial claims for unemployment benefits in the United States for the week through December 12 rose by 23,000 to 885,000, while economists expected a slight decline in the indicator.
     

    Corporate Update
     

    Lennar shares gained 7.6%. The developer said that construction orders and construction completed in the 1st quarter are likely to exceed analysts’ expectations.

    Shares of Rite Aid is up 17%. Accenture rose 6.9%.
     

    The yield on the 10-year US Treasury bond rose to 0.929% from 0.920% on Wednesday. The dollar continued to decline. The WSJ dollar index fell 0.3%. On Wednesday, it dropped to its lowest level since April 2018.
     

    The downturn was triggered, among other things, by the Federal Reserve’s announcement that $ 120 billion in monthly asset purchases will continue until tangible progress is made towards targeted employment and inflation.

    Today Top Movers


    Cyclo Therapeutics Inc (CYTH) share price going up 86.29% at $8.83 in today’s premarket trading session after Analysts update its ranking to Buy.
     

    Costco Wholesale Corp (COST) share price is up 0.06% at $370.5 in premarket trading on Friday. After the news of company spending millions of dollars on the Employee apprecitions.
     

    Skillz Inc (SKLZ) is soaring 2.07%, with the share price of $23.2 in early morning on Friday after the company becomes first publicly-traded mobile esports platform.
     

    Casper Sleep Inc. (CSPR) trading at $6.49, with the gain of 0.16% in Friday’s premarket session surged on no major update.

    Top Upgrades & Downgrades


    Keefe Bruyette turned bullish on Redwood Trust, Inc. (RWT), upgrading the stock to “Outperform” and assigning a $9.50 price target.
     

    Annaly Capital Management, Inc.(NYSE: NLY) has won the favor of Keefe Bruyette’s equity research team. The firm upgraded the shares from Market Perform to Outperform and moved their price target to $9.
     

    New Residential Investment Corp (NYSE: NRZ) received an upgrade from analysts at Keefe Bruyette, who also set their one-year price target on the stock to $10.50. They changed their rating on NRZ to Outperform from Market Perform in a recently issued research note.
     

    Earlier Friday Stifel reduced its rating on DENTSPLY SIRONA Inc (XRAY) stock to Hold from Buy and assigned the price target to $52.
     

    Credit Suisse analysts reduced their investment ratings, saying in research reports covered by the media that its rating for AEGON N.V. (AEG) has been changed to Neutral from Outperform.
     

    Analysts at Credit Suisse downgraded Palantir Technologies Inc (PLTR)’s stock to Underperform from Neutral on Friday.

    Latest Insider Activity


    Snap Inc. (SNAP) Chief Financial Officer Andersen Derek announced the sale of shares taking place on Dec 16 at $51.44 for some 33,164 shares. The total came to more than $1.71 million.
     

    Coeur Mining Inc. (CDE) SVP & General Counsel Nault Casey M. sold on Dec 16 a total 329,291 shares at $10.02 on average. The insider’s sale generated proceeds of almost $0.5 million.
     

    9 Meters Biopharma Inc. (NMTR) Director Sirgo Mark A declared the purchase of shares taking place on Dec 15 at $0.65 for some 230,769 shares. The transaction amount was around $0.15 million.
     

    Lexicon Pharmaceuticals Inc. (LXRX) Director Artal International S.C.A. bought on Dec 16 a total 32,259,461 shares at $3.20 on average. The purchase cost the insider an estimated $35.0 million.

    Earnings To Watch


    Top US earnings releases scheduled for today include MINISO Group Holding Limited (NYSE:MNSO). It will announce its Sep 2020 financial results. The company is expected to report earnings of $0.03 per share from revenues of $291.99M in the three-month period.
     

    Analysts expect TuanChe Limited (NASDAQ:TC) to report a net income (adjusted) of -$0.24 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $12.79M.
     

    NIKE Inc. (NKE), due to announce earnings after the market closes today, is expected to report earnings of $0.62 per share from revenues of $10.56B recently concluded three-month period.