Earnings Preview: Nike (NKE) Q2 Earnings Expected to Decline

Core Viewpoint - Nike (NKE) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ending November 2025, with the consensus outlook indicating a significant impact on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for December 18, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for quarterly earnings is $0.37 per share, reflecting a year-over-year decrease of 52.6%, while revenues are projected at $12.15 billion, down 1.7% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.8% higher, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Nike is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.79%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [9][10]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [10]. Historical Performance - In the last reported quarter, Nike was expected to post earnings of $0.27 per share but actually delivered $0.49, resulting in a surprise of +81.48% [13]. - Over the past four quarters, Nike has consistently beaten consensus EPS estimates [14]. Conclusion - While Nike does not appear to be a strong candidate for an earnings beat this time, investors should consider other factors influencing stock performance ahead of the earnings release [17].