Concerns Over Nike's Inventory Glut: How Will Q3 Earnings Be Affected? - Nike (NYSE:NKE)

Athletic powerhouse Nike Inc NKE reports third-quarter earnings Tuesday after market close; here’s what investors need to know.

By The Numbers: Analysts expect the sportswear titan to issue diluted earnings of 56 cents per share on revenues of $11.48 billion. In the same quarter last year, Nike issued diluted earnings of 87 cents per share on revenues of $10.87 billion.

Investors will be interested in knowing whether the company’s promotional blitz to unclog its shelves has impacted margins, as the brand faced a glut of inventory throughout the 2022 holiday season.

Check out Nike’s analyst ratings here.

With China — a key market for Nike — easing its stringent Covid-19 policies, Nike could see an uplift to its bottom line.

The company’s current price/earnings per share (P/E) multiple stands at 34x, beating the sector average of 14.83x, while falling short of its own five-year average of 47.72x.

Trailing its own five-year average indicates room for future stock price growth. More than that, Nike offers a quarterly dividend of $0.34 per share, translating to a 1.12% yield at present.

If an investor wanted to yield $200 per month in Nike dividends, with its 1.12% dividend yield, they would need to own $214,285.71 worth of Nike, or 1,764 shares at current levels.

NKE Price action: Shares of Nike are trading 0.062% higher Monday to $120.42, according to Benzinga Pro.

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Image and article originally from www.benzinga.com. Read the original article here.