Shares of Nike (NYSE:NKE) fell in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $1.03, which beat analysts’ consensus estimate of $0.84 per share. Sales increased by 1% year-over-year, with revenue hitting $13.4 billion, but fell by 1% on a currency-neutral basis. This missed analysts’ expectations by $40 million.
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Furthermore, NIKE Direct revenues and NIKE Brand Digital sales increased 6% and 4%, respectively, on a reported basis. In addition, the company’s gross margin increased by 170 basis points to 44.6%.
Is NIKE Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 20 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 6% rally in its share price over the past year, the average NKE price target of $127 per share implies 3.7% upside potential.
