Nike Inc (NYSE: NKE)'s earnings release
indicated that challenged businesses
were stabilizing and highlighted the company’s speed of execution, Credit Suisse’s Christian Buss said in a report. He maintains an
Outperform rating on the company, with a price target of $60.
Buss raised the revenue estimates for FY 2017 and 2018 from $34,442 million to $34,524 million and from $36,872 million to
$36,960 million, respectively. The EPS estimates for FY 2017 and 2018 have been reduced from $2.50 to $2.36 and from $2.73 to
$2.68, respectively.
Takeaways From The Earnings Release
Buss mentioned that the changes in estimates followed Nike’s earnings release, which
reflected:
- A better-than-expected performance by the North America and European business.
- Moderating gross margin deterioration, as the company “stabilizes its challenged North America business more quickly than
previously anticipated,” the analyst wrote.
- Improved SG&A expense control.
“We believe the company is managing competitive challenges better than feared and as a result, we believe that a return to mid-
to high-single digit constant currency revenue growth is likely to occur sooner than anticipated,” Buss commented. He added,
however, that currency headwinds were increasing for Nike, and the reported
earnings growth may not reaccelerate faster than anticipated.
Latest Ratings for NKE
Date |
Firm |
Action |
From |
To |
Dec 2016 |
Cowen & Co. |
Downgrades |
Outperform |
Market Perform |
Dec 2016 |
HSBC |
Upgrades |
Hold |
Buy |
Nov 2016 |
Wedbush |
Initiates Coverage On |
|
Neutral |
View More Analyst Ratings for
NKE
View the Latest Analyst Ratings
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