Nike Beats Analyst Estimates on EPS

Before you go, we thought you'd like these...
Before you go close icon

Nike (NYS: NKE) reported earnings on Dec. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Nike beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share grew.

Margins dropped across the board.

Revenue details
Nike booked revenue of $5.7 billion. The 15 analysts polled by S&P Capital IQ anticipated sales of $5.6 billion. Sales were 18% higher than the prior-year quarter's $4.8 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.97 per share. GAAP EPS of $1.00 for Q2 were 6.4% higher than the prior-year quarter's $0.94 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.7%, 260 basis points worse than the prior-year quarter. Operating margin was 11.0%, 100 basis points worse than the prior-year quarter. Net margin was 8.2%, 120 basis points worse than the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $5.8 billion. On the bottom line, the average EPS estimate is $1.19. (There are eight revenue estimates and 16 EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $24.3 billion. The average EPS estimate is $4.96. (There are nine revenue estimates and 19 EPS estimates.)

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,058 members out of 2,177 rating the stock outperform, and 119 members rating it underperform. Among 646 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 621 give Nike a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nike is outperform, with an average price target of $102.56.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners