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Stock impact report

Why Nike (NKE) Shares Are Trading Lower Today [Yahoo! Finance]

Nike, Inc. (NKE) 
Last nike, inc. earnings: 3/24 04:15 pm Check Earnings Report
US:NYSE Investor Relations: investors.nike.com/home/default.aspx
Company Research Source: Yahoo! Finance
While revenue of $11.28 billion was flat year on year and met expectations, and earnings per share of $0.35 beat analysts' estimates, investors focused on deteriorating fundamentals. Profitability shrank significantly, with the company's operating margin falling to 5.6% from 7% in the same quarter last year. A key area of concern was the 3% year-on-year decline in constant currency revenue, which strips out the effects of foreign exchange rates to provide a clearer picture of underlying demand. This continued a worrying trend of sales declines over the last two years. The results also highlighted poor long-term performance, as earnings per share have declined annually over the last five years, suggesting the company has become less profitable. Overall, the quarter's weaknesses in sales and profitability appeared to alarm investors, leading to a significant sell-off. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Show less Read more
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