On Tuesday June 28^th, Nike Inc. released its fourth quarter earnings results. The company is currently a Zacks Rank #4 (Sell) and shares are down around 16% year-to-date.

Watch our video to see David's thoughts on Nike’s past earnings, what is currently going on with the company, and see if his earnings prediction was correct.

Furthermore, Dave will investigate some potential options trades for Nike.

Nike Inc. in Focus

Nike Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. Nike offers products in eight categories, including running, basketball, football, men’s training, women’s training, sportswear, action sports, and golf under the NIKE and Jordan brand names. The company is one of the largest sellers of athletic footwear and apparel in the world.

Nike is coming off of an earnings beat of 14.58% in its previous earnings report, posting EPS that was $0.07 higher than the Zacks Consensus Estimate. Actually, Nike has been on a streak of beating on earnings estimates, posting higher-than-expected earnings in each of its last four quarters by an average of 11.89%.

NIKE INC-B Price, Consensus and EPS Surprise

NIKE INC-B Price, Consensus and EPS Surprise | NIKE INC-B Quote

Heading into this earnings report, our Most Accurate Estimate for Nike is $0.69, which is in exactly in line with the Zacks Consensus Estimate.

Nike’s streak of earnings beats show that it has been successful with its customer-centric approach, innovative products, and strong portfolio of brands.  The company continues to expand its product lines in addition to its efforts to enhancing retail and online customer experiences. Nike continues to have solid numbers for its future orders too, which bodes well for its revenue and income figures.

Last quarter Nike was able to beat on earnings as mentioned, but it missed on revenue expectations due to foreign currency headwinds. The company reiterated its outlook on the full year, but NKE is heavily exposed to international markets,  and it continues to be subject to the effects of these headwinds. Nike also has a history of investing heavily in advertising and marketing leading up to the Olympics which are coming up this year in August, and these costs could impact its earnings.

Nike is currently a Zacks Rank #4 (Sell) and has seen downward revision activity as of late from analysts, which can mean a poor earnings report is on its way.

Nike Inc. Price, Consensus and EPS Surprise

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Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.