NKE - Nike Suffers Its Worst One-Day Plunge After Guidance Cut But Shares Are Not A Buy Yet
2024-07-03 01:20:14 ET
Summary
- Nike reported fiscal 2024 Q4 non-GAAP EPS of $1.01/share, up 45% from the same period in 2023, exceeding analyst expectations.
- Revenues for Q4 were down 2% or flat on a currency neutral basis.
- A projected 10% drop in Q1 revenue and slashed 2025 full-year guidance led to a 20% plunge in the stock, its worst on record.
- Nike's failure to innovate and underperformance in digital brand contributed to the stock decline.
- While I view the valuation as attractive, turnarounds require time and analysts projections for a return to growth seem too ambitious. NKE is presently a Hold.
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Nike Suffers Its Worst One-Day Plunge After Guidance Cut, But Shares Are Not A Buy Yet