Companies and Brands
Nike Beats Q2 Estimates on Top and Bottom Lines
Published:
Last Updated:
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.
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.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
