Can Nike Meet These Numbers?

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Nike (NYS: NKE) is expected to report Q1 earnings on Sep. 27. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Nike's revenues will expand 5.4% and EPS will shrink -17.6%.

The average estimate for revenue is $6.41 billion. On the bottom line, the average EPS estimate is $1.12.


Revenue details
Last quarter, Nike notched revenue of $6.47 billion. GAAP reported sales were 12% higher than the prior-year quarter's $5.77 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.17. GAAP EPS of $1.17 for Q4 were 4.9% lower than the prior-year quarter's $1.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.8%, 150 basis points worse than the prior-year quarter. Operating margin was 12.1%, 150 basis points worse than the prior-year quarter. Net margin was 8.5%, 180 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $25.33 billion. The average EPS estimate is $5.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,273 members out of 2,397 rating the stock outperform, and 124 members rating it underperform. Among 649 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 623 give Nike a green thumbs-up, and 26 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 $120.85.

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The article Can Nike Meet These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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