Nike (NKE) 3Q22 Earnings Beat Was High Quality - Morgan Stanley
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Morgan Stanley analyst Kimberly Greenberger reiterated an Overweight rating and $192.00 price target on Nike (NYSE: NKE) after 3Q22 EPS of $0.87 exceeded Street expectations of $0.71 on better-than-expected results on every line item. Key takeaways included:
- better-than-feared NA & EMEA revenue growth
- a sequential improvement in China revenue growth
- underlying demand for the brand remains strong
The analyst stated "NKE reiterated 2022 revenue guidance, and slightly improved gross margin and SG&A guidance, despite macro volatility and Covid related lockdowns in China (+MSD% y/y revenue growth, "at least +150 bps y/y" GM expansion to 46.3%+ implied, and "mid-teens" y/y SG&A dollar growth vs. +MSD% y/y, +150 bps y/y, and mid-high-teens y/y prior). All in, we think 2022 guidance remains conservative but prudent given the dynamic macro environment."
Shares of Nike closed at $130.19 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
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