Nike (NYSE:NKE) Quarterly Earnings Preview

Core Viewpoint - Nike is set to release its quarterly earnings on September 30, 2025, with analysts predicting an EPS of $0.28 and revenue of approximately $10.98 billion, amidst competitive pressures from brands like Adidas and Under Armour [1][2][6] Financial Performance Expectations - Investors are closely monitoring the upcoming earnings report, as it may significantly influence Nike's stock price, despite expectations of a year-over-year decline in earnings and lower revenues for the quarter ending August 2025 [2][6] - The management's discussion during the earnings call will be critical for assessing the sustainability of any immediate price changes [2] Historical Growth and Valuation - Historically, Nike has shown slow and steady growth in revenue and cash flow, although this has been affected by stock buybacks at unfavorable prices and economic cycle disruptions [3] - The company's fair value is estimated to be around the current market price, with a suggested margin of safety for investors being below $45 per share [3] Financial Metrics - Nike's financial metrics indicate a P/E ratio of 32.54, reflecting a premium investors are willing to pay for earnings, alongside a price-to-sales ratio of 2.26 and an enterprise value to sales ratio of 2.34 [4][6] - The enterprise value to operating cash flow ratio stands at 29.29, highlighting the relationship between the company's valuation and its operational cash flow [4] Financial Health Indicators - The earnings yield is reported at 3.07%, indicating a return on investment relative to share price, while the debt-to-equity ratio of 0.83 suggests a balanced financing approach [5][6] - A current ratio of 2.21 demonstrates Nike's strong capability to cover short-term liabilities with short-term assets, providing a stable financial position as it approaches the earnings release [5][6]