<img src=”https://storage.googleapis.com/prod-zenger-upload/image/20230630/feat_d3f9f970-36cf-4172-be80-6e224f8de08a.jpg” alt=” The American multinational sports clothing brand Nike logo is seen displayed on a smartphone with an economic stock exchange index graph in the background.Nike, Inc was trading flat on Thursday as the company heads into its fourth-quarter earnings print after the close.When Nike printed a third-quarter earnings beat on March 21, the stock dropped nearly 5% the following day. PHOTO BY BUDRUL CHUKRUT/GETTY IMAGES “>
For the third quarter, Nike reported revenue of $12.4 billion, which beat the $11.47-billion consensus estimate. The company reported earnings per share of 79 cents, beating a consensus estimate of 55 cents.
For the fourth quarter, analysts, on average, estimate Nike will report earnings per share of 67 cents on revenues of $12.59 billion.
Ahead of the event, JPMorgan analyst Matthew Korn maintained an Overweight rating on Nike and cut the price target from $152 to $146.
From a technical analysis perspective, Nike’s stock looks bullish, having formed a possible bull flag pattern above the 200-day simple moving average (SMA).
It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
The Nike Chart: Nike may have formed a bull flag pattern, with the upward-sloping pole created between June 23 and June 27 and the flag forming since. If the pattern is recognized, the measured move is about 6.4%, which suggests Nike could rise toward the $120 level.
Produced in association with Benzinga