Nike share price: 5 things to watch for in Q3 results
Nike's Q3 earnings will have to answer these five questions.
Nike’s third quarter (Q3) results will be a factor for many investors. Here are four questions that can affect Nike’s Q3 earnings.
Will Nike's earnings per share and revenue rise?
Though Nike had strong Q2 earnings, Nike’s earnings per share is predicted by financial analysts to be $0.83, a decline from a a year ago. In contrast, Nike’s revenue is projected to surge by 5.7% to $9.50 billion, according to Zack’s Consensus Estimate. InvestorPlace also predicts that Nike profits may increase because of strong sales during the holiday season.
Could bad publicity affect Nike’s profits?
While Nike sales grew, the corporation has had to deal with negative publicity. A recent spate of bad publicity could possibly hurt Nike’s Q3 profits. During a US college basketball game in February, a Nike sneaker fell apart on star player Zion Williamson’s foot. The new PG 2.5 sneakers were supposed to the top new shoes promoted by the shoe company. Nike’s stock temporarily dropped, then rebounded after the incident. However, it remains to be seen if it will continue to weigh on investors’ minds and impact Nike’s earnings.
Will new technology and established brands help Nike's earnings?
Nike’s sales have increased because of its investment in digital technology and jump in online sales. Nike’s profits online have increased in its last quarter by 41%. The corporation’s new line of shoes sold very well in stores and online, including the Air Max and Jordan brands. The shoe compnay is also fully investing in the future of sneakers by creating self-tying shoes that are controlled by an app. Investors will want to know if a mixture of new tech and classic shoes will improve Nike’s Q3 revenue.
Will Nike’s profits improve overseas?
Nike’s US sales are projected to grow by 8% to $3.87 billion, according to Zach’s Consumer Estimate. In addition to Nike’s home country of the US, Nike’s profits are still increasing overseas. In China, Nike’s revenue is also expected by Zack’s to surge to $1.54 billion, a double-digit growth.
Can sales beyond shoes affect Nike’s profits?
Nike’s profits could increase if it sells more than its iconic shoes. With athleisure (athletic leisure) clothes sales booming, apparel sales grew by 14% in Q2. Investors will see if Nike’s earnings will increase because of Nike’s clothes as well as its shoes.
Nike’s Q3 revenue will be watched by financial experts and investors to see if the shoe company can still attract large numbers of customers.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
