Nike Stock Shares Crash On Earnings Miss
Ticker.tv News | Jun 29, 2016 01:10AM ET
Nike Inc (NYSE:NKE)h3 Nike Earnings and Technicals/h3
On Tuesday after the close, Nike Inc (NKE) announced fourth quarter that it missed analyst expectations, sending shares cascading in the post-market session. The company announced fourth quarter earnings of 49 cents per share on $8.24 billion in revenues, while analysts were looking for 48 cents per share on $8.28 billion in revenues.
NKE’s earnings fell 2% from $865 million a year earlier to $846 million. This wasn’t exactly what investors were looking for and now shares are getting pummeled for it. Currently analysts have an average price target of $70.05.
Looking at the 5-minute chart you will see that shares are down big in the post market, with lows currently at $49.14 after closing the trading day at $53.09, equaling a $7.4% drop in value. Shares are looking to hit new yearly lows if prices maintain their current levels, but we should see some support come in around $49 and $47.25 while resistance will be met at $50, $51.48 and $52.
NKE will be in play tomorrow with increased volatility and volume, so make sure to trade around key pivot levels and place hard stops.
h3 CEO Comments/h3h3 NKE Profile/h3“Our consistent growth is fueled by innovation, which is why fiscal 2016 was such a breakthrough year for NIKE in everything we do,” said Mark Parker, President and CEO, NIKE, Inc. “From product to manufacturing to how we serve our consumers – more personally and at scale – we’ve raised the bar of what’s possible. It’s a great time to be in sports, and the NIKE Brand has never been stronger. Fueled by our unrivaled roster of athletes, fiscal 2017’s calendar of sport moments promises to build on our business momentum and inspire consumers.”
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company 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. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, the company sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos.
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Further, it sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment under the NIKE brand name for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark. NIKE, Inc. sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores and Internet Websites (direct to consumer operations), as well as a mix of independent distributors and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
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