Earnings To Watch: Nike (NKE) Reports Q4 Results Tomorrow

Athletic apparel brand Nike (NYSE:NKE) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Nike met analysts’ revenue expectations last quarter, reporting revenues of $11.59 billion, down 10.4% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Nike a buy or sell going into earnings? Read our full analysis here, it’s free .

This quarter, analysts are expecting Nike’s revenue to decline 9.5% year on year to $12.12 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nike has missed Wall Street’s revenue estimates four times over the last two years.

With Nike being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer discretionary stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.3% on average over the last month. Nike is up 5.7% during the same time and is heading into earnings with an average analyst price target of $89.51 (compared to the current share price of $78.09).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. .