Nike Stock (NKE) – Shares Collapse After Earnings – Here’s How I Plan To Profit

Nike announced its earnings on Tuesday Mar 22 after markets closed. Nike stock trades on the New York Stock Exchange under the symbol NKE.

In the past couple of days leading up to the earnings announcement, Nike stock had risen and closed on Tuesday at $64.90.

Nike had a habit of surprising investors with outstanding earnings numbers but the prior 2 quarters they had not met analysts estimates. Many investors were expecting Nike this time, would bring in strong numbers and they had pushed the price of Nike stock higher.

Nike Stock Rally Returned 10.5%

Nike Stock opened the day on March 10 at $58.70. By the close on Tuesday March 22, Nike stock was up 10.5% for the second rally this year. The bigger rally was in February which saw a gain of 16.5% in Nike Stock.

Nike Stock Rally To Mar 22 2016 return 10.5%

Nike Stock Rally To Mar 22 2016 return 10.5%

Nike Stock Earnings Disappointment

Nike Stock quarterly earnings result released on Tuesday after the market closed, disappointed a lot of analysts despite an 8% rise in revenue to $8 billion for the quarter which ended Feb 29. It was a jump of half a billion in revenue but it was short of analysts’ estimates by $200 million.

Earnings beat analysts estimates by a wide margin however. Analysts were expecting 49 cents per share and Nike stock earned 55 cents. This is incredible growth. The same quarter in the prior year Nike earned 45 cents. This is a 22% jump in earnings.

Nike Stock (NKE) After Hours

After hours the stock fell 6% following the earnings announcement. The concern among analysts and investors is that Adidas and Under Armour are gaining market share at the expense of Nike.

In the conference call after earnings, Nike executives told analysts they were expecting revenue in the high single digits or low double digits going forward as long as the dollar stayed fairly flat or neutral. They were asked about the impact of fewer stores now that Sports Authority is bankrupt and closing its stores. The company indicated they projected no change in their outlook.

Profiting From The Nike Stock Share Collapse

The rest of this article outlines a number of trade ideas I will be using on Wednesday. FullyInformed Members can review the latest Nike Stock (NKE) trade ideas through this link or they can sign in to the full members site here. Non-members can join here or read about the benefits of being a member.


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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