:max_bytes(150000):strip_icc()/GettyImages-2251942334-747f7feebea0409baedde43c6c3d72a6.jpg "Here’s How Much Traders Expect Nike Stock to Move After Earnings Thursday")
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Key Takeaways
- Nike is set to post fiscal second-quarter results after the closing bell Thursday, with sales and profits expected to decline as the company weathers the impact of higher tariffs.
- Options pricing suggests traders see Nike’s stock moving nearly 7% in either direction after the results.
Nike is set to post quarterly earnings after the market closes Thursday, with traders anticipating a big move from athletic apparel maker’s stock following the results.
Current options pricing suggests traders expect Nike’s (NKE) stock could swing up to 7% in either direction by the end of the week. A move of that size from Tuesday’s close around $67 would push the stock up to around $72 at the high end, its highest level in two months though still in negative territory for the year. At the low end, the stock could drop down to $62.
While up from their April lows in the wake of President Trump’s “Liberation Day” tariffs announcement, the shares are still down about 11% year-to-date. It hasn’t been an easy year for Nike, which continues to grapple with a number of challenges as part of its turnaround plan under CEO Elliott Hill, who took over last October, and higher tariffs haven’t helped.
Nike topped sales estimates when it last reported results in late September, but noted that persistent uncertainty around tariffs was negatively impacting its business, and profits declined. The company said at the time that tariffs could cost it about $1.5 billion annually, up from a previous forecast of $1 billion.
Why This Matters to Investors
Nike’s results this week could show whether the company is making progress in its turnaround plans, though analysts have warned Nike may need more time, especially as it weathers the impact of higher tariffs.
Nike is projected to post earnings per share of $0.38 for the fiscal second quarter, roughly half of what it reported a year earlier, according to estimates compiled by Visible Alpha. Its revenue is seen falling 1% year-over-year to $12.23 billion.
Ahead of Thursday’s report, Bank of America analysts said Nike’s third-quarter revenue outlook will be the key metric to watch Thursday, as analysts and investors look for a sales inflection back to consistent growth. The consensus estimate of analysts surveyed by Visible Alpha at $11.46 billion would represent a close to 2% rise from the same period a year ago.
Of the 13 analysts with current ratings tracked by Visible Alpha, eight consider Nike’s stock a “buy,” compared to four neutral ratings, and just one “sell” rating. Their mean target close to $82 would be Nike’s highest level since February.
