FMP
Sep 23, 2024 9:27 PM - Davit Kirakosyan(Last modified: Sep 24, 2024 3:25 AM)
Image credit: FMP
JPMorgan placed Nike (NYSE:NKE) on "Negative Catalyst Watch" ahead of its upcoming fiscal Q1 2025 earnings report, scheduled on October 1.
JPMorgan analysts lowered their EPS forecast for Nike’s first quarter to $0.48, below the Street estimate of $0.52, citing a projected 10% drop in gross profit dollars—worse than the expected 9.3% decline. The firm pointed to headwinds across all major geographic regions contributing to Nike’s challenges.
In China, demand has weakened due to cautious consumer behavior and digital promotions, while local competitors continue to capture market share through competitive pricing. In the Europe, Middle East, and Africa (EMEA) region, softening consumer traffic and intensified competition in both lifestyle and performance categories are weighing on Nike's performance. Meanwhile, in North America, the company faces difficulties in its direct-to-consumer (DTC) factory stores, which are particularly affected by reduced spending from lower-income consumers.
JPMorgan also revised its full-year fiscal 2025 EPS estimate for Nike to $2.98, falling below the Street estimate of $3.08, driven by revenue projections that are 5.9% lower than anticipated. The bank now expects Nike’s financial recovery to be delayed until fiscal 2027, with a margin recovery likely preceding revenue growth in fiscal 2026.
While JPMorgan expressed optimism about Elliott Hill’s recent appointment as CEO, signaling a potential shift back to Nike’s core strategies, the firm expects near-term financial challenges to persist.
May 14, 2024 11:41 AM - Sanzhi Kobzhan
A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...
May 24, 2024 9:30 AM - Rajnish Katharotiya
Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...
May 27, 2024 3:30 PM - Rajnish Katharotiya
In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...