Nike Stock Q2: It Depends On How Much Patience You Have

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Nike Posts Quarterly Earnings That Surpassed Investor

Scott Olson/Getty Images News

Investment Thesis

Last time I talked about Nike Inc (NYSE:NKE) back in October 2023, I talked about the company’s first quarter performance and how the company has found its mojo in China. I also highlighted

Item

FY24 Projections

Rationale

Sales

$51.7 billion

Company estimates along with author’s projections

Gross Margins

44.9%

Company Estimates

Total Gross Profit for FY23

$23.21 billion

= 44.9% of $54 billion

SG&A Expenses

$17.2 billion

Company estimates along with author’s projections

Other Expenses

$300 million

Mid-point of Company’s Estimates

Tax Rate

18.2%

Company estimates

Total Net Income

$4.7 billion

= (1-0.182) x ($24.25 billion – $17.4 billion – $0.250 billion)

Number of Shares Outstanding

1.20 billion

Source: Refinitiv

Projected FY24 EPS

$3.92

Projected Forward P/E

28.5x

Source: Refinitiv

Forward PEG ratio

1.8

Source: Refinitiv

Projected FY25 EPS

$4.54

Target Price

$130.00

= 28.5 x $4.54

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