$Nike (NKE.US)$ If revenue estimed drop 10% in next quarter , then basically EPS in the next QR is drop 90% as it net profit margin would be eroded to 1 % from previous 10%+ ,not dip enough for the current price .
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$Nike (NKE.US)$ will drop to 68
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$NVIDIA (NVDA.US)$ Elon musk is acquiring this company with premium 30%
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$NVIDIA (NVDA.US)$ My TP for today is 130
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103566790 OP : assuming the operating cost remain the same or at least 80% the same, then the reduces in revenue will directly affect on the bottom line , correct me if I'm wrong.
103566790 OP 103966930 : 40% should be the worse case scenario, and Nike can close shop if that happen
103566790 OP : this is just a rough calculation that everyone can calculate , finance manager obviously need far more than that , no hard feelings:)
103566790 OP : Imagine you earn 100 dollar for sales of 10 apples then less the cost of sales 50 + all the other fixed expense around 40, derriving a net profit of 10 dollar .. What if assuming all the fixed cost and variable cost are same as last quarter but selling price is cheaper by 10% ? your profit will become 0. Of course ,I ignore other factors such as they can reduce the marketing cost or anything else that help increase the bottom line