Nike on Track for All-Time High After Earnings

Companies and Brands

Published: June 25, 2015 4:40 pm

Last Updated: April 28, 2020 2:44 am

Nike Inc. (NYSE: NKE) reported fiscal fourth quarter and full year 2015 earnings after markets closed Thursday. The athletic gear company reported diluted earnings per share (EPS) of $0.98 on revenue of $7.78 billion. In the same period a year ago, the company reported EPS of $0.78 on revenue of $7.43 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.83 and $7.69 billion in revenue.

For the full fiscal year Nike posted EPS of $3.70 on revenues of $30.6 billion compared with EPS of $2.97 and revenues of $27.8 billion in 2014. The consensus estimates called for EPS of $3.55 on revenues of $30.51 billion.

Nike did not offer guidance in its press release, but did say that orders for delivery from June through November 2015 are up 2% over a the same period a year ago totaling $13.5 billion. On a constant currency basis orders are up 13%, above the figure analysts expected. The consensus first quarter fiscal 2016 estimates call for EPS of $1.15 on revenues of $8.26 billion. For the 2016 fiscal year analysts expect EPS of $3.96 on revenues of $32.48 billion.

Gross margins rose to 46.2%, up 0.6%year-over-year for the quarter. Nike attributed the gains to higher average selling prices and continued growth in the higher margin direct to consumer business.Quarterly net income rose 24% year-over-year to $865 million. Nike said that the 26% increase in diluted EPS reflects strong revenue growth and gross margin expansion, a lower tax rate and a decrease in the weighted average diluted common shares outstanding. The company repurchased 6.8 million shares for approximately $678 million in the fourth fiscal quarter. As of the end of fiscal 2015, a total of 80.9 million shares had been repurchased under this program for approximately $6.0 billion from a total 4-year program of $8 billion, at an average cost of $73.55 per share.

Nike’s shares are up about more than 35% over the past 12 months, while year-to-date the stock has added about 9.4%.

Shares are getting a solid boost in after-hours trading today, up more than 2.5% at $107.90, which would be a new 52-week high if it holds through Friday’s market open. The current 52-week range is $75.67 to $107.45. Thomson Reuters had a consensus analyst price target of $110.00 before today’s results were announced.

ALSO READ: States With the Fastest (and Slowest) Growing Economies

The Average American Has No Idea How Much Money You Can Make Today (Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps