Nike Earnings Preview

Nike will report fourth quarter earnings and Fiscal 2015 results on June 26. Prior to the earnings release, analysts trimmed estimates and reiterated their ratings on the athletic footwear and apparel retailer. Consensus Estimates Analysts expects earnings to come in at $0.75 for the quarter and $2.97 for the current year. Revenue for the quarter is estimated to come in at $7.34 billion. The consensus FY 2015 revenue estimate is $27.71 billion. Analysts Preview Nike Ahead of Earnings Deutsche Bank analyst David Weiner maintained his Buy rating and $85.00 price target ahead of earnings. Weiner trimmed fiscal estimates by 1.5 percent on Monday, noting the difficult macro environment and Nike's conservative forecasts. Camilo Lyon from Canaccord expects the company to reports "unfavorable" fourth quarter results, in terms of risk and reward. Lyon expects the company to report growth of 28 percent in Western Europe and projects a slight decrease in China projections. Morgan Stanley is optimistic for a fourth quarter beat. The analyst wrote, "We believe a 4Q14 EPS beat with in-line FY15 guidance will positively catalyze shares. We model $0.77 4Q EPS vs. the Street's $0.75, based on a higher top-line growth outlook. Guidance likely signals Nike's long-term mid-teens EPS growth story is on track and helps maintain the stock's P/E." reiterated a Buy rating on Nike shares following a meeting with management. McShane emphasized the company's focus on its growth strategy and expects guidance to improve as a result of the World Cup. The analyst believes Nike's plan to concentrate in Europe and China will be successful in returning better turnover and lower inventory risk."