Nike's Earnings Beat Expectations, But Guidance Disappoints
Steve Miller | Mar 22, 2019 07:58PM ET
- Nike (NYSE:NKE) fell 6% on Friday after the footwear maker posted earnings that beat Wall Street expectations but included disappointing guidance.
- The stock’s market cycles suggest there is still more downside risk into the coming months.
Nike (NKE) Stock Weekly Chart
The company reported earnings per share of $0.68 and total revenue of $9.61 billion, compared to analyst estimates of $0.64 and $9.58 billion.
However, CFO Andrew Campion explained that while he expects strong sales for the coming quarter, “We expect 6 points of foreign exchange headwinds, which would result in low single-digit reported revenue growth.”
In analyzing the market cycles for NKE, we can see that the stock is now in its declining phase as it approaches the end of its current cycle. In fact, we believe it has clearly topped, with a likely decline into May. Our target is $80-83.
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