Nike (NKE) is scheduled to post fiscal fourth-quarter results after the market closes on Thursday, with investors expecting a sizable move following the report.
Current options pricing suggests traders expect shares could move close to 8%, or roughly $5 in either direction in the wake of the results. At the high end, that would leave shares near $66, or just above $56 at the low end.
Nike shares have moved an average of about 8% in the sessions following its last four earnings reports, with declines of 5%, 6%, and nearly 20%, along with one 0.3% gain. Last quarter, the company said tariffs could negatively impact its sales, and said its plan to shift into new inventory could also slow sales as older franchises see sales decline.
Nike shares have lost roughly a fifth of their value so far this year, and nearly 40% in the last 12 months as the shoe retailer has faced declining sales and a change in leadership.
Analysts expect Nike to report a decline of about 15% in revenue year-over-year to $10.73 billion, while earnings per share are projected to drop sharply to $0.13 from $0.99 a year ago. Bank of America analysts said recently that they will be more focused on the company’s long-term outlook amid new CEO Elliott Hill’s turnaround effort than short-term results.
Several analysts have said they prefer to wait on the sidelines of Nike’s turnaround, with eight of the 17 brokers tracked by Visible Alpha giving the stock a “hold,” while another eight say it’s a “buy” and just one calls it a “sell.” The stock has an average price target near $72, suggesting 18% upside from Wednesday’s close.