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Source: istock

Nike Posts Strong Q1 Revenue, Stock Surges amid COVID-19 Pandemic

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Nike stock rose 9 percent in the after-market trading hours on Sept. 22. The footwear and apparel giant reported better-than-expected results for the first quarter of fiscal 2021, which ended Aug. 31. The company reported an 82 percent surge in online sales. Nike's guidance calls for demand to rise through the holidays. The company said that the shift to online sales could be the new normal. 

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Nike's earnings call

In the first quarter, Nike reported an EPS of $0.95 compared to $0.86 in the first quarter of fiscal 2020. The EPS beat analysts’ consensus estimate of $0.47. Nike generated sales of $10.59 billion in the first quarter, which was 0.6 percent lower than its sales in the first quarter of fiscal 2020. The company beat analysts’ average sales estimate of $9.15 billion.

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Source: istock
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In the first quarter, Nike’s digital business continued to be a key growth tool for the company. The digital business rose 83 percent on a currency-neutral basis. During the first-quarter earnings conference call, Nike CEO John Donahoe said, “We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back.”

Nike’s sales from Greater China rose 6 percent YoY to $1.78 billion. The company’s revenue from North America fell by 2 percent YoY to $4.23 billion. The revenue from Europe, the Middle East, and Africa rose 5 percent YoY to $2.91 billion. The Asia-Pacific and Latin America revenue fell by 18 percent to $1.10 billion.

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What was Nike's stock price after hours?

On Sept. 22, Nike stock rose about 9 percent in after-hours trading. The company beat analysts’ earnings and sales estimates for the first quarter.

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What is Nike's stock price today?

Nike stock was up about 12.5 percent at $131.65 in pre-market trading on Sept. 23. The stock rose 3.1 percent on Sept. 22 and closed at $116.87 with a market capitalization of $182.3 billion. Nike stock has fallen by 1.5 percent in the last five days, while it has risen by 28.7 percent in the last year.

Nike stock is trading 3.0 percent below its 52-week high of $120.48 and 94.8 percent above its 52-week low of $60.00. Year-to-date, the stock had risen by 15.4 percent as of Sept. 22.

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Should you buy Nike stock?

Currently, analysts' stock price forecast for Nike is $137.88, which suggests an 18 percent upside. The highest target price for Nike is $160, which implies a 36.9 percent upside. Analysts' lowest target price is $107, which suggests an 8.4 percent downside. Among the 27 Wall Street analysts who track Nike, 24 recommend a buy, two recommend a hold, and one recommends a sell.

Several analysts raised their target price for Nike stock after the company’s first-quarter results. Goldman Sachs raised its target price for Nike stock to $140 from $126. Piper Sandler increased its target price to $148 from $130, while Barclays raised its target price to $150 from $132. Deutsche Bank upgraded the stock to buy from hold and lifted its target price to $151 from $107. UBS, Stifel, Citi, and Morgan Stanley also raised their target prices for Nike stock.

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