Nike Beats Q2 Estimates on Top and Bottom Lines
Nike Inc. (NYSE: NKE) reported fiscal second-quarter financial results after markets closed on Tuesday. The company posted $0.50 in earnings per share (EPS) and $8.2 billion in revenue. The consensus estimates from Thomson Reuters called for $0.43 in EPS and…
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Nike Inc. (NYSE: NKE) reported fiscal second-quarter financial results after markets closed on Tuesday. The company posted $0.50 in earnings per share (EPS) and $8.2 billion in revenue. The consensus estimates from Thomson Reuters called for $0.43 in EPS and $8.09 billion in revenue. The same period from last year had $0.45 in EPS and $7.69 billion in revenue.
Revenues for the NIKE Brand were $7.7 billion, up 8% on a constant currency basis, driven by double-digit currency neutral growth in Western Europe, Greater China and the Emerging Markets segments as well as the Sportswear and Running categories.
Revenues for the Converse brand were $416 million, up 5% on a currency neutral basis, driven by strong growth in North America.
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The company did not reference its futures orders in the earnings report, instead these will be discussed on the conference call.
During the second quarter, Nike repurchased a total of 17.0 million shares for roughly $900 million as part of the four-year, $12 billion program approved by the Board of Directors in November 2015. So far only $3.1 billion of the repurchase plan has been exercised.
Cash and short-term investments totaled $5.9 billion, which was about $173 million less than the same period from last year.
Mark Parker, Chairman, President and CEO of Nike, commented:
NIKE’s ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart. With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond.
Shares of Nike closed Tuesday up 1.9% at $51.79, with a consensus analyst price target of $62.19 and a 52-week trading range of $49.01 to $68.19. Following the release of the earnings report, the stock was up 3% at $53.33 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
