Market Preview: Brussels Calling
The other big name reporting on Thursday is Nike (NKE). The average estimate of analysts polled by Thomson Reuters is for a profit of $1.37 a share in the sneaker maker's fiscal fourth quarter on revenue of $6.51 billion.
Nike shares peaked in early May at $114.81 and have since pulled back to close Wednesday at $98.11. Even with that slide though, the shares are still up 10% over the past year and 2% so far in 2012. The sell side is mostly bullish with 14 of the 22 analysts covering Nike at either strong buy (9) or buy (5) and the 12-month median price target at $123.
The company has a strong track record of beating Wall Street's consensus view, having done so in the past eight quarters. In March, when reporting its third-quarter results, Nike forecast a decline in gross margin of around 100 basis points because of the impact of inventory management efforts in Europe and China.
Also reporting on Thursday are Accenture (ACN), American Greetings (AM), Family Dollar Stores (FDO), Finish Line (FINL), Greenbrier Cos. (GBX), Schnitzer Steel (SCHN), Smith & Wesson (SWHC), and TIBCO Software (TIBX).The economic calendar includes some heavyweight numbers with weekly initial and continuing jobless claims at 8:30 a.m. ET and the third estimate of first-quarter gross domestic product also at 8:30 a.m. ET. The consensus view is for initial claims to tick down to a still elevated 385,000 from 387,000 in the prior week, according to Briefing.com. GDP is expected to remain at 1.9%. And finally, shares of Flow International (FLOW) were active in Wednesday's extended session after the Kent, Wash.-based maker of industrial waterjet machines used for cutting applications reported fiscal fourth-quarter earnings of $2.6 million, or 6 cents a share, on revenue of $63.4 million. The average estimate of analysts polled by Thomson Reuters was for a profit of 4 cents a share on revenue of $62.6 million in the April-ended quarter. The stock was last quoted at $3.40, up nearly 17%, on volume of more than 50,000, according to Nasdaq.com. The big loser in late trades was Synta Pharmaceuticals (SNTA) as investors appear unimpressed with the results of a phase 2b/3 study of the company's proposed treatment for patients suffering from advanced non-small cell lung cancer. The stock, which has gained more than 60% so far in 2012, was last quoted at $5.35, down 26%, on volume of more than 200,000, according to Nasdaq.com. --Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron.
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