Will These Numbers from Nike Be Good Enough for You?

Seth Jayson, The Motley Fool
Updated

Nike (NYS: NKE) is expected to report Q3 earnings on March 21. 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 grow 6.3% and EPS will expand 11.7%.

The average estimate for revenue is $6.22 billion. On the bottom line, the average EPS estimate is $0.67.


Revenue details
 Last quarter, Nike recorded revenue of $5.96 billion. GAAP reported sales were 7.4% higher than the prior-year quarter's $5.55 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, non-GAAP EPS came in at $0.57. GAAP EPS of $0.42 for Q2 were 16% lower than the prior-year quarter's $0.50 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 42.5%, 30 basis points worse than the prior-year quarter. Operating margin was 11.7%, 10 basis points better than the prior-year quarter. Net margin was 6.4%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $25.37 billion. The average EPS estimate is $2.64.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,327 members out of 2,451 rating the stock outperform, and 124 members rating it underperform. Among 692 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 673 give Nike a green thumbs-up, and 19 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 $52.03.

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The article Will These Numbers from Nike Be Good Enough for You? 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 recommends Nike and recommends the following options:Long Jan 2015 $32 Calls on Nike and Long Jan 2015 $65 Calls on Nike. The Motley Fool owns shares of 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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