Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Nike, Micron, and FedEx

Let’s dive in.

Nike (NKE)

Nike exceeded earnings expectations but missed revenue estimates and reduced its full-year guidance.

The company reported net income of $1.5 billion, or 99 cents per share, up from $1.03 billion, or 66 cents per share, a year earlier. However, sales fell to $12.61 billion, a 2% decrease from $12.83 billion last year.

Sales in North America were $5.28 billion, below the expected $5.45 billion, while sales in Europe, the Middle East, and Africa were $3.29 billion, and in Asia Pacific and Latin America, $1.71 billion, both below estimates.

For fiscal 2024, Nike's sales were flat at $51.36 billion, marking the slowest growth since 2010, excluding the pandemic.

The sales miss was attributed to a decline in its lifestyle business, insufficient momentum in its performance business, weak online sales in April and May, and reduced traffic in China due to macroeconomic conditions.

Nike projects a 10% sales drop in the current quarter, with ongoing softness in China and uneven global consumer trends. Fiscal 2025 sales are now expected to decline by mid-single digits, a reversal from previous growth expectations, and first-half sales are expected to drop in the high-single digits.

NKE shares are -19.2% so far this week.

Micron (MU)

Micron reported strong results, though investors didn’t like the forward guidance.

The company reported a net income of $332 million, or 62 cents per share, compared to a net loss of $1.9 billion, or $1.73 per share, a year ago. Revenue reached $6.81 billion, exceeding the $6.67 billion forecasted by analysts and marking an 81% increase from last year.

CEO Sanjay Mehrotra emphasized the growth of Micron's AI business, despite sluggish smartphone and PC markets. The company's AI-oriented products are expected to increase in price, and its data center business grew by 50% quarter-over-quarter.

For the current quarter, Micron forecasts adjusted earnings per share of $1.08 on $7.6 billion in revenue, aligning with analysts' revenue expectations but slightly exceeding their earnings projections of $1.05 per share.

MU shares are -4.8% so far this week.

FedEx (FDX)

FedEx shares surged this week after the company reported better-than-expected earnings and revenue.

The company posted a net income of $1.47 billion, or $5.94 per share, slightly down from $1.54 billion, or $6.05 per share, the previous year. Revenue increased to $22.1 billion from $21.9 billion the previous year, but for the full fiscal year, revenue was $87.7 billion, down from $90.2 billion.

Capital spending for fiscal 2024 was $5.2 billion, a 16% decrease from $6.2 billion in fiscal 2023 and below the forecasted $5.7 billion. This reduction is part of FedEx's plan to cut $4 billion in costs by the end of fiscal 2025.

For fiscal 2025, FedEx anticipates low to mid-single-digit revenue growth, driven by e-commerce and low inventory levels. The company also plans to repurchase $2.5 billion worth of shares and recently announced a 10% increase in its quarterly dividend.

FDX shares are +16.0% so far this week.

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The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.