Nike (NYSE:NKE) recently reported earnings for its first quarter of Fiscal Year 2023. Diluted earnings per share came in at $0.93, which beat analysts’ consensus estimate of $0.92 per NKE share. In the past nine quarters, the company has beaten estimates nine times.
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Sales increased 4% year-over-year (10% on an fx-neutral basis), with revenue hitting $12.7 billion compared to $12.25 billion, higher than the $12.28 billion that analysts were looking for.
In addition, the company demonstrated operating deleverage since earnings fell despite higher revenue. Indeed, diluted EPS fell 20% as revenue increased 4%. Likewise, NKE’s EBIT margin fell from 17.7% to 14.5%. As a result, the company’s operating income decreased from $2.16 billion in the comparable period to $1.84 billion now.
Investor Sentiment for NKE Stock is Currently Neutral
The sentiment among TipRanks investors is currently Neutral. Out of the 568,072 portfolios tracked by TipRanks, 2.1% hold NKE stock. In addition, the average portfolio weighting allocated towards NKE among those who do have a position is 5.16%. This suggests that investors of the company are fairly confident about its future.
In addition, in the last 30 days, 0.2% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
Is NKE Stock a Buy, Sell, or Hold?
NKE has a Moderate Buy consensus rating based on 12 Buys, seven Holds, and zero Sells assigned in the past three months. The average NKE stock price target of $123.28 implies 29.3% upside potential.
Takeaway – NKE Beats Earnings and Revenue Estimates
Nike experienced a solid quarter as earnings per share and revenue beat estimates. In addition, analysts are somewhat confident that the company will bounce back, given NKE’s Moderate Buy consensus rating. Despite this, the stock is currently selling off in the after-hours trading session.
