Investors are keenly watching the financial updates from influential companies such as Nike (NYSE: NKE ) and Micron Technology (NASDAQ: MU ) this week, amid recent major market benchmark losses. Both companies hold significant influence in their respective sectors, and positive news could potentially trigger a market turnaround.
Nike, the athletic footwear giant, has had a tough year in 2023, with its shares dropping about 25% since the beginning of the year. The company's struggle to maintain previous growth rates due to multiple obstacles has heightened investor concerns about its recovery pace.
In June, Nike reported its fiscal fourth-quarter results for the period ending May 31. Despite a 5% increase in overall sales compared to the same quarter last year, the strong U.S. dollar and increased costs for materials and shipping, along with extensive markdowns to clear inventory, negatively impacted profits. This resulted in a drop in earnings and raised investor concerns about slow guidance for the new fiscal year.
Nike's fiscal first-quarter results are expected to be released on Thursday afternoon. The company itself predicted that revenue would likely remain flat or increase by low-single-digit percentages for the quarter. Consensus forecasts suggest that earnings will suffer a 25% blow and settle at $0.70 per share. Despite these projections, many investors continue to have faith in Nike's long-term prospects due to its history of enduring difficult times and consistently generating modest yet significant sales and profit gains.
On the other hand, Micron Technology, a leading semiconductor chipmaker, has seen nearly 40% gains in 2023. As a memory chip manufacturer, Micron has benefitted from the rise of artificial intelligence and cloud computing. However, its financial report due on Wednesday afternoon will prove critical in determining whether Micron truly deserves its place in the bull market among chipmakers.
Micron's fiscal third-quarter report for the period ending June 1 was less than stellar, with revenue dropping by more than half compared to the same period last year, resulting in an adjusted net loss of $1.57 billion. Despite this, some investors found solace in the fact that sales seemed to have reached their lowest point during this period, with Micron predicting gradual recoveries in the following quarters.
For its fiscal fourth quarter, Micron anticipates revenue to be between $3.7 billion and $4.1 billion, which could signify some progress towards regaining its previous peak performance. However, it is unlikely to offset its losses completely, with predictions of per-share losses ranging from $1.12 to $1.26.
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