Manufacturer of sports footwear and apparel NIKE, Inc. (NYSE: NKE) will release its financial results for the fourth quarter of fiscal 2022 today, June 27, after market close. It offers footwear, apparel, equipment, accessories and services worldwide.
Although uncertain macroeconomic conditions and supply chain challenges remain headwinds for the stock, Nike has shown resilience and operational capabilities even in difficult times.
In the third quarter, Nike posted optimistic results. The strength of direct-to-consumer (DTC) sales, product innovation and the company’s digital platform have generated revenue. Revenue figures increased 5% year over year, while gross margins increased 100 basis points. However, sales in China have been affected due to COVID-related restrictions.
During the third quarter earnings call, Nike Chief Financial Officer Matt Friend said, “The strength of the NIKE brand and consumer demand remain at an all-time high, and we are confident in the momentum of our enterprise.
Therefore, ahead of the fourth quarter 2022 earnings release, with the help of TipRanks’ website traffic tool, we can see how the company performed in the fourth quarter. This new tool measures and analyzes visits to a company’s website over a period of time.
Website visit data reflects an upward trend
Using the website traffic tool, an upward trend was identified. In the fourth quarter of fiscal 2022, total visits to nike.com trended upward, globally, representing a 26.43% increase over the prior year quarter and a sequential increase of 8.79%.
The increase in website visits could be due to increased customer demand for the company’s products and services. As a result, strong revenue could be expected in the quarter to report.
For the fourth quarter of fiscal 2022, the consensus estimate is set at earnings of $0.82 per share on total revenue of $12.1 billion.
The Taking of Wall Street
Recently, Guggenheim analyst Robert Drbul reiterated a buy rating on Nike, but cut the price target to $160 (upside potential of 41.71%) from $195.
Maintaining his optimistic stance, Drbul said: “While we don’t believe Nike is immune to the many challenges posed by COVID-19, logistics and other geopolitical uncertainties, we do believe that many of these issues are transitory in nature.
The analyst views the current level as an attractive buying opportunity.
“On the call, we expect several important updates from the company, including trends in its China business, inventory levels, outlook for its large North American business and visibility on earnings guidance. for fiscal year 23,” Drbul added.
The rest of the street is cautiously bullish on the stock, with a moderate buy consensus rating based on 15 buys and seven holds. The average Nike price target of $142.05 implies an upside potential of 25.81%. The shares have lost 25.28% over the past year.
Additionally, Nike scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
TipRanks’ Hedge Fund Trading Activity Tool shows that sentiment in Nike is currently positive, as the cumulative change in holdings in the 35 hedge funds that were active over the past quarter was an increase of 537,000 shares. .
According to website traffic trends reflected on TipRanks’ website traffic tool, Nike could post strong results in the fourth quarter. Additionally, hedge funds seem bullish on the stock.
As a result, income-oriented investors buying the dips may view the stock as a valuable investment at the current level due to its long-term outlook and robust capital deployment activity.
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