HomeMost PopularNike Shares Rise on Profit Beat, China Sales Fall Short

Nike Shares Rise on Profit Beat, China Sales Fall Short

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Nike’s (NYSE:NKE) stock is up 8% in premarket trading following better-than-expected profits, despite missing sales estimates in China.

Earnings Report Highlights

  • Nike’s first fiscal quarter earnings per share (EPS) of $0.94 exceeded the average analyst estimate of $0.75.
  • However, revenue of $12.94 billion fell short of the estimated $12.99 billion.
  • Greater China revenue of $1.74 billion also missed the expected $1.83 billion.
  • The company successfully reduced inventory to $8.7 billion, lower than the estimated $8.84 billion.
  • Direct sales reached $5.4 billion, an increase of 6% compared to the previous year.

In a statement, CEO John Donahoe emphasized the company’s focus on scaling their successes with greater consistency and speed as they continue to integrate and streamline their business.

Nike also announced dividends of $524 million, a 9% increase from the previous year. Despite the positive news, shares of NKE are down 25% year-to-date.

SEC Charges Exelon with Fraud

The Securities and Exchange Commission (SEC) has charged Exelon (NASDAQ:EXC), its subsidiary Commonwealth Edison, and a former ComEd CEO with fraud. The charges stem from a multi-year scheme to β€œcorruptly influence and reward” former Illinois House Speaker Michael Madigan.

In a deferred prosecution agreement, ComEd acknowledged that Madigan’s support of legislation favoring the company resulted in anticipated benefits worth over $150 million. Exelon and ComEd have agreed to pay a $46.2 million civil penalty, while charges against former CEO Anne Pramaggiore will be litigated separately.

EEOC Sues Tesla and Chipotle for Civil Rights Violations

The U.S. Equal Employment Opportunity Commission (EEOC) has filed separate lawsuits against Tesla (NASDAQ:TSLA) and Chipotle Mexican Grill (NYSE:CMG) for alleged violations of federal law.

Tesla is accused of tolerating racial harassment of its Black employees and retaliating against those who opposed the harassment, while Chipotle is accused of discriminating against a teen worker who wore a hijab and retaliating against her after she complained.

Market Updates

Wall Street’s major averages closed higher on Thursday, with the Nasdaq adding 0.83%, the S&P 500 gaining 0.59%, and the Dow rising 0.35%. Among the top-performing sectors were Communication Services, Materials, and Consumer Discretionary.

As of 6 am, futures for the Dow, S&P 500, and Nasdaq are all in the green, with gains of 0.4%, 0.5%, and 0.7% respectively. Crude oil is up 0.6% at over $92 a barrel, while Bitcoin is down 0.2%.

In international markets, the FTSE 100 is up 0.8% and the DAX is up 0.9%.

Pre-market Movers

One of the biggest stock movers in premarket trading is OPKO Health (NASDAQ:OPK), which is up 14% following news of a contract win from the Biomedical Advanced Research and Development Authority (BARDA) received by ModeX Therapeutics.

Economic Calendar

Today’s economic calendar includes the release of the Chicago Purchasing Managers’ Index (PMI) at 9:45 am, and a scheduled speech by Fed’s John Williams on the economic outlook and monetary policy at the Long Island Association Regional Economic Briefing. However, the visit has been canceled, and his prepared remarks will be posted on the New York Fed’s website at the scheduled time.

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