Athletic footwear and apparel manufacturer NIKE, Inc. (NYSE:NKE) will report its financial results for the fourth quarter of fiscal 2022 today, June 27, after the market close. It offers footwear, apparel, equipment, accessories and services worldwide.
Though uncertain macroeconomic conditions and supply chain issues continue to be headwinds for stocks, Nike has demonstrated resilience and operational prowess even in difficult times.
Nike released positive results for the third quarter. Direct-to-consumer (DTC) power, product innovation and digital platform have resulted in revenue. Peaks rose 5% year over year, while gross margins rose 100 basis points. However, sales in China have been affected by COVID-related restrictions.
In the third quarter, Nike CFO Matt Friend commented, “NIKE brand strength and consumer demand remain at historically high levels and we are confident in our business momentum.”
Therefore, ahead of the release of the fourth quarter fiscal 2022 earnings, we can see the company’s fourth quarter performance using TipRanks’ website traffic tool. This new tool measures and analyzes visits to the company’s website over a period of time.
Website visit data reflects an increasing trend
An upward trend was observed using the Website Traffic Tool. In the fourth fiscal quarter of 2022, total visits to nike.com showed a growing trend worldwide, increasing 26.43% compared to the previous quarter and increasing 8.79% sequentially.
The increase in website visits may be due to increased customer demand for the Company’s products and services. As a result, strong returns can be expected in the quarter under review.
For fiscal 2022, consensus is $0.82 per share on total revenue of $12.1 billion.
Take Wall Street
Recently, Guggenheim analyst Robert Drbul reiterated his buy rating on Nike, but lowered the target price from $195 to $160 (41.71% upside potential).
Maintaining his bullish stance, Drbul said, “While we don’t believe Nike is immune to many of the challenges posed by COVID-19, logistics and other geopolitical uncertainties, we believe many of these issues are temporary.
The analyst sees an attractive buying opportunity at the current level.
“Calling the company, we expect several key updates including trends in its China business, inventory levels, prospects for its key North American business and visibility of expected FY23 earnings,” Drbul added.
The rest of the street is cautiously optimistic on stocks, with a consensus rating of a modest buy based on 15 buys and seven holdings. Nike’s average price target of $142.05 means 25.81% upside potential. Shares are down 25.28% over the past year.
Nike also scores an 8 out of 10 on the TipRanks Smart Score system, indicating the stock has strong potential to outperform market expectations.
hedge funds
TipRanks hedge fund trading activity shows that confidence in Nike is currently positive as the cumulative change in holdings across all 35 active hedge funds represented an increase of 537,000 shares in the most recent quarter.
bottom line
Depending on the website traffic trends reflected in the TipRanks website traffic tool, Nike may show strong Q4 results. Hedge funds also seem optimistic about equities.
As a result, income investors who buy downturns may consider the stock a valuable investment given its long-term prospects and extensive capital deployment activity at its current levels.
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