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Nike (NKE) is scheduled to report results of its third fiscal quarter after the market close on March 21, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: In conjunction with its Q2 earnings report, Nike forecast fiscal 2023 revenue growth in the mid-teens, with Q3 revenue coming in higher than Q4. Analyst are currently expecting Q3 revenue of $11.47B and FY23 revenue of $50.09B.

Barclays sees potential upside to estimates in fiscal Q3 from North America, wholesale, and China. North America is seeing continued strength in daily average users, according to Apptopia data, while expected Wholesale upside will come from footwear restocks.

POSITIVE DIGITAL TRENDS: Jefferies said the firm's digital data panel shows interest in sneakers was strong during the holiday season and has remained elevated year-to-date, which leads the firm to expect Nike to report "healthy" Q3 results that beat expectation. Updated data suggests China is getting better and Adidas' (ADDYY) recent weakness could provide Nike with additional share gains, said the firm.

EPS BEAT 'APPEARS LIKELY': Morgan Stanley said that an EPS beat in Q3 "appears likely," though potentially one with less upside compared to last quarter, the firm contended in its earnings preview note. However, the firm also acknowledged intra-quarter channel checks suggest broader North America sportswear demand has softened slightly as the region returned to a push market and promotional activity has worsened somewhat more than previously expected, as confirmed by Adidas and Puma (PUMSY).

BRAND MOMENTUM SUSTAINABLE: After meeting with Nike management in January, JPMorgan said the message from management was Nike is exiting the pandemic as a "stronger brand" transitioning to a consumer direct company, the analyst said. The firm sees see Nike's brand momentum across geographies as sustainable.

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