Nike stock dives as Wall Street jeers margin outlook rather than cheering profit and revenue beats

6/28/2022 10:12:00 PM

Shares of Nike Inc. took a tumble Tuesday toward a two-year low after multiple Wall Street analysts cut their price targets, as the sporting apparel and...

Shares of Nike took a tumble Tuesday toward a two-year low after multiple Wall Street analysts cut their price targets, as the sporting apparel giant’s disappointing gross margin guidance offset fiscal fourth-quarter profit and revenue beats.

Shares of Nike Inc. took a tumble Tuesday toward a two-year low after multiple Wall Street analysts cut their price targets, as the sporting apparel and...

Shares of Nike Inc.BANGKOK — Asian shares advanced Monday after Wall Street ended a rare winning week, capped by a 3.Two men got into an argument onboard a southbound 2 train as it approached the Wall Street station around 12:20 a.(.

took a tumble Tuesday toward a two-year low after multiple Wall Street analysts cut their price targets, as the sporting apparel and accessories giant’s disappointing gross margin guidance offset fiscal fourth-quarter profit and revenue beats.The stock NKE, -6.U.68% dropped $5.The dispute escalated and the suspect cut the 57-year-old victim in the forehead with a razor, police said.94, or 5.futures and oil prices also were higher.4%, in midday trading, enough to pace the Dow Jones Industrial Average’s DJIA, -1.S.

35% decliners, and to put it on track for the lowest close since Aug.Stocks climbed.The suspect got off the train at the Fulton Street station and fled in an unknown direction, cops said.7, 2020.The stock’s price decline cut about 39 points off the Dow’s price, while the Dow fell 195 points, or 0..6%.Kevin C.Of the 31 analysts surveyed by FactSet, no less than 14 lowered their price targets.1% gain on Friday for the benchmark S&P 500.22 per barrel.

That lowered the average price target to $142.82 from $162.S.29 at the end of May.But Wall Street remained overwhelmingly bullish on Nike, as 23 analysts had the equivalent of buy ratings on the stock, and the new target implied about 37% upside from current levels.Optimism over China’s progress in controlling coronavirus outbreaks, as schools and businesses reopen, was also fueling buying, analysts said.Nike reported late Monday net income for the quarter to May 31 that slipped to $1.close of 3.

44 billion, or 90 cents a share, from $1.That gave Wall Street a reprieve from its recent tumbles.51 billion, or 93 cents a share, in the same period a year ago, and above the FactSet consensus of 80 cents a share.Revenue slipped 0.1%, while the Nikkei 225 NIK in Tokyo gained 1.9% to $12.23 billion, but beat the FactSet consensus of $12.In South Korea, the Kospi 180721 climbed 1.close of 3.

06 billion.Meanwhile, cost of sales rose 0.Australia’s S&P/ASX 200 XJO added 1.6% to $6.73 billion and gross margin contracted to 45.9%.0% from 45.The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 103.

8%, as higher inventory obsolescence reserves in China and increased freight and logistics costs offset higher selling prices and favorable currency moves.Futures for the S&P 500 ES00 were 0.And on the post-earnings conference call with analysts, Chief Financial Officer Matthew Friend said fiscal 2023 gross margins are expected to be flat to down 50 basis points (0.50 percentage points) from the prior year, citing continued elevated freight and product costs.2%.Stifel Nicolaus analyst Jim Duffy reiterated the buy rating he’s had on Nike for at least the past four years, but dropped his stock price target to $135 from $150.Duffy said not only did fourth-quarter margin miss his forecast for an improvement to 47.Russia faces a Sunday night deadline to meet a 30-day grace period on interest payments originally due May 27.Register now for FREE unlimited access to Reuters.

0%, the full-year guidance was also “light.” Duffy said by his calculation Nike’s margin guidance implied fiscal 2023 earnings per share of $3.Positive news about inflation helped push stocks in New York higher on Friday, but the boost to sentiment may prove ephemeral, “largely because the downward trend for equity indices remains intact and we have seen previous instances of a single event pertaining to inflation, economic outlook and central banks’ policies bringing back market jitters and reversing dip-buying sentiments,” Jun Rong Yeap of IG said in a commentary.25 to $4.00, which is below his EPS estimate at the time of $4.4% gain for the week, erasing the brutal loss it took a week earlier, though it’s still close to 20% below its record set early this year.48.

Wedbush’s Tom Nikic also remained bullish on the stock but trimmed his target to $130 from $139, citing a “noisy” quarterly report and full-year outlook that was “more conservative than expected.01 points to 3,911.” Nikic said the company’s outlook showed that COVID-19-related lockdowns in China hit the company hard, and led to “lingering” margin issues.“While trends in this market have slowly improved amid reopening, there’s now excess supply in the marketplace, which is likely to cause a highly promotional environment in the near term,” Nikic wrote in a note to clients.7% to 31,500.Nikic suggested Nike’s margin guidance implies an EPS range of $3.25 to $3.3% higher, at 11,607.

85.The stock has plunged 37.To beat down punishingly high inflation, central banks are raising interest rates and taking other measures that hurt prices for investments and could slow the economy enough to cause a recession.2% so far this year, which currently makes it the worst year-to-date performer among Dow components.In comparison, the Dow has lost 14.A report on Friday confirmed sentiment among American consumers sank to its lowest point since the University of Michigan began keeping records, hurt in particular by high inflation.0% this year.

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