On Tuesday, September 25th, 2018, Nike (NKE) reported their fiscal first-quarter earnings after the market closed for regular trading. Net income came in at a whopping $1.09 billion dollars, easily beating estimates.

Profits came in at $0.67 per share also blowing away estimates of $0.62 per share from most analyst expectations. The quarterly revenue, another whopping number came in at 9.95%.

They were expected to bring in roughly 9.88 billion dollars. the stock closed the regular training session at $84.79 which was up $0.52 on the day.

However, in the after-hours trading session when the earnings announcements have been out and Traders had a chance to respond, she has dropped by 3.53% 4 down $2.99 closing at $81.80.

The Charts

(Click on image to enlarge)

The above price chart shows Nike in the regular trading session to the left and the after-hours session to the right. It is easy to see just when the earnings announcement came out as the shares plummeted-creating that red long candle down. Shares have tried to rally but quickly lost their momo and closed much lower.

(Click on image to enlarge)

The above price chart shows Nike on the daily time frame going back roughly 6 months. It is easy to see with the naked eye that the trend had been on a nice gradual 45-degree angle upward.

However, now that the earnings announcement has come out it just may break that trendline that it has respected for such a long time. Many eyes will be on this one in the morning as this is the company that has been recently in the news with their ad campaign featuring a football player who chose to take a knee during the national anthem.

Company Comments

Mark Parker, Chairman, President and CEO, NIKE, Inc. had this to say to investors:

“NIKE’s Consumer Direct Offense, combined with our deep line up of innovation, is driving strong momentum and balanced growth across our entire business. Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers.”*

Andy Campion, Executive Vice President and Chief Financial Officer, NIKE, Inc. added:

“We are delivering stronger global growth and profitability than we anticipated entering this fiscal year. While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how NIKE operates, drives growth and creates value for our shareholders.”