NKE - Nike Shares Tank After Q2 Earnings: 'Reduced Guidance Implies Ongoing Uncertainty' | Benzinga
Nike Inc (NYSE: NKE) shares are tanking Thursday after the company reported softer-than-expected revenue guidance for its fiscal second quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the Nike earnings report.
Goldman Sachs On Nike
Analyst Brooke Roach maintained a Buy rating while reducing the price target from $139 to $135.
Nike reported an earnings beat for the fiscal second quarter, driven by margins, and "demonstrated healthy sequential improvement in profitability,” Roach said in a note.
The company also announced a significant reduction in its revenue guidance for the back half of the fiscal year to reflect "FXheadwinds, weaker consumer demand as a result of macro pressures (particularly in Greater China and EMEA), slower digital growth momentum as a result of traffic softness / higher market promotions, and a more targeted approach to key product franchise life cycle management.”
Raymond James On Nike
Analyst Rick Patel reiterated an Outperform rating while reducing the price target from $130 to $124.
Nike reported an earnings beat, despite in-line revenue, on better-than-expected gross margins and cost control, Patel said.
"While the weaker outlook is disappointing, GM % gains and Opex control are better than previously planned, which cushion the impact ...