Nike (NYSE:NKE) will announce its Fiscal 2023 fourth-quarter results after the market closes on Thursday, June 29, 2023. Prior to the Q4 earnings release, 11 analysts reaffirmed their Buy recommendation on the stock, which demonstrates their confidence in NKE’s potential. The optimistic outlook of analysts is based on Nike’s track record of delivering robust quarterly performances.
Analyst Gabriella Carbone of Deutsche Bank is of the opinion that Nike’s risk/reward profile appears to be favorable as the current stock price already incorporates “recent negative channel checks.” She believes that Nike’s direct-to-consumer (DTC) channel reflects significant brand momentum and a resumption of sustainable growth in China. These factors contribute to the analyst’s positive outlook on the company’s prospects.
Further, Goldman Sachs analyst Kate McShane believes NKE might witness better-than-expected growth in China due to the rapid “acceleration in retail trends following a somewhat slower rebound in December and early 2023.” Moreover, McShane finds the rise in marketing investment behind the Pegasus 40 running shoe at Nike DTC and across partners to be another positive factor.
Lastly, in a note to investors on June 14, RBC Capital analyst Piral Dadhania acknowledged that the consensus forecasts for Nike’s upcoming earnings are “realistic.” Additionally, in comparison to its peers, Dadhania finds Nike’s growth momentum, progress in inventory clearance, and brand strength to be stronger.
Wall Street’s Estimates for Q4
Overall, Wall Street expects NKE to post earnings of $0.68 per share in Q4 compared with earnings of $0.90 per share reported in the prior-year period. Meanwhile, revenue is expected to rise by 2.7% from the year-ago quarter to $12.58 billion.
In its fiscal third-quarter earnings call, the management guided for flat to low single-digit revenue growth in the to-be-reported quarter.
Is NKE Stock a Buy, According to Analysts?
Nike stock sports a Strong Buy consensus rating ahead of the earnings release based on 18 Buys, three Holds, and one Sell recommendation assigned in the past three months. Meanwhile, the average NKE stock price target of $131.90 implies 17.2% upside potential.
