Nike Soars After Earnings Announcement Show Strong Results
Nike Inc (NKE:US) stock soared Wednesday after the retailer delivered a strong earnings report to ease investor concerns about the slowdown. The company reported earnings per share (EPS) of $0.85 on revenue of $13.32 billion, crushing analyst estimates that called for EPS of $0.64 on $12.57 billion.
On the back of the strong quarterly performance, Nike’s management indicated during the earnings call that it now expects to post revenue growth for the full fiscal year. This is despite falling margins (which were down 300 basis points from a year-ago period) as Nike continues to push swollen inventories lower.
The strong performance was mostly driven by the North American and European regions, which more than offset the weakness in China. Nike is hoping that the expected reopening of the Chinese economy will boost its sales next year as the United States faces a potential recession.
Nike stock rallying this week will please several congress stock traders that have exposure to Oregon-based business. Congressman Ro Khanna, among others, had been selling Nike stock in recent months, although he returned to buying in early November.
His latest trade was a $15,000 - $50,000 purchase of Nike shares on November 03, when the stock closed at $90.4. For comparison purposes, Nike stock price was trading at nearly $120 a share on Wednesday.
Congresswoman Kathy Manning was also trading Nike stock this year, both on the long and short sides. Most recently, Manning bought Nike stock in July when it traded above $100 a share.
Nike shares are still down about 30% year-to-date (YTD).
