Nike Inc NKE shares are trading lower Wednesday morning. The stock initially jumped after the iconic athletic footwear and apparel company reported strong fourth-quarter results, but it pulled back shortly after. Several analysts adjusted price targets following the print.
- Q3 Revenue: $12.4 billion beat estimates of $11.47 billion
- Q3 EPS: 79 cents beat estimate of 55 cents
Nike Direct sales were up 17% year-over-year, while digital sales increased 20% and wholesale grew 12%. The company saw some weakness in China, with Nike Brand revenues down 8% year-over-year.
"NIKE's brand distinction and strong execution continue to create separation in the marketplace. We have made tremendous progress on inventory as we position NIKE for sustainable and more profitable growth," said Matthew Friend, executive vice president and CFO of Nike.
Inventories totaled $8.9 billion at the end of the quarter. Nike closed the period with $10.8 billion in cash, equivalents and short-term investments.
- UBS analyst Jay Sole maintained Nike with a Buy and raised the price target from $151 to $155.
- Barclays analyst Adrienne Yih upgraded Nike from Equal-Weight to Overweight and raised the price target from $110 to $154.
- Citigroup analyst Paul Lejuez maintained Nike with a Neutral and raised the price target from $115 to $125.
- Wells Fargo analyst Kate Fitzsimons maintained Nike with an Equal-Weight and lowered the price target from $146 to $142.
- JPMorgan analyst Matthew Korn maintained Nike with an Overweight and lowered the price target from $156 to $152.
- Goldman Sachs analyst Kate McShane maintained Nike with a Buy and raised the price target from $134 to $148.
- Stifel analyst Jim Duffy maintained Nike with a Buy and raised the price target from $132 to $143.
See Also: These Analysts Revise Price Targets On Nike Following Upbeat Q3 Earnings
NKE Price Action: It's possible Nike is facing selling pressure because the stock ran up into the print. Nike shares are up more than 6% over the last week.
The stock was down 1.76% at $123.40 at time of publication, according to Benzinga Pro.
Photo: Jan W. from Pixabay.
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