Mixed Q2 Results Send Nike Stock Falling After-Hours: The Details
Portfolio Pulse from Ryan Gustafson
Nike, Inc. (NYSE:NKE) reported Q2 earnings of $1.03 per share, beating estimates of 85 cents, but revenue fell short at $13.39 billion against expectations of $13.43 billion. Despite a gross margin increase to 44.6%, shares dropped 5.57% after-hours due to the revenue miss and news of cash and equivalents and short-term investments decreasing by $0.7 billion from last year. Nike plans to achieve up to $2 billion in cost savings over the next three years, with expected restructuring charges of $400 to $450 million.
December 21, 2023 | 9:50 pm
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Nike's Q2 earnings beat expectations but a slight revenue miss and a decrease in cash reserves led to a 5.57% drop in after-hours trading. The company is also planning significant cost savings measures.
The after-hours stock price decline is directly related to the revenue miss and concerns over the decrease in cash reserves. The cost savings plan indicates potential future restructuring, which can be both a risk and an opportunity for investors.
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