Earnings Preview: What To Expect From Nike And How Its Handling Tariffs

Core Viewpoint - Nike is set to report earnings, with expectations of a gain of $0.12/share on $10.67 billion in revenue, while the Whisper number suggests a gain of $0.21/share [3] Financial Performance - Nike's earnings have fluctuated over the past few years, with earnings per share (EPS) of $1.84 in 2020, $3.56 in 2021, $3.75 in 2022, $3.23 in 2023, and projected EPS of $3.95 in 2024, $2.15 in 2025, and $1.85 in 2026 [4] - The stock has a price to earnings (P/E) ratio of 20, which is 0.8x lower than the benchmark S&P 500 [4] Market Sentiment and Technical Analysis - The stock is currently in a long downtrend and trading below its 200-day moving average, indicating a potentially unhealthy market position [6] - The relative strength (RS) rating of the stock is only 14, suggesting very low market performance [6] Tariff Impact - The upcoming earnings report may address the impact of tariffs, as Nike imports its sneakers from abroad, which could significantly affect future guidance [5]