Will Lululemon Outshine Nike on Earnings? (LULU, NKE)

Lululemon Athletica has estimates from Thomson Reuters of $0.49 EPS on $362.37 million in revenues; next quarter estimates are $0.30 EPS on $257.07 million in revenues.  For the year January 2013, estimates are $1.60 EPS on $1.31 billion in revenues.  Lulu hit a new high of $74.50 on Friday and the consensus analyst target is $67.94.   Nike has estimates from Thomson Reuters of $1.16 EPS on $5.8 billion in revenues.  The coming quarter is expected to be $1.41 EPS on $6.59 billion in sales.  Analysts have a consensus target of $112.69 for Nike.

Nike often beats earnings, but on a predictable basis.  It also had wide currency fluctuations.  Lululemon has not been as predictable on just how much it can beat earnings or raise guidance of late, but you wouldn’t know it with a fresh all-time high.  It seems like an easy observation to say that both companies will need to do very well when they report earnings on Thursday to keep profit takers from lightening up in these shares.

JON C. OGG