Companies and Brands
Nike Takes Aim at All-Time High After Earnings
Published:
Last Updated:
Nike did not offer guidance in its press release, but did say that orders for delivery from September 2015 through January 2016 are up 9% over a the same period a year ago. On a constant currency basis orders are up 17%, above the figure analysts expected. The consensus second fiscal quarter estimates call for EPS of $0.88 on revenues of $7.69 billion. For the 2016 fiscal year analysts expect EPS of $4.20 on revenues of $32.49 billion.
Gross margins rose to 47.5%, up 0.9% 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 23% year-over-year to $1.2 billion. Nike said that the 26% increase in diluted EPS reflects strong revenue growth and gross margin expansion, selling and administrative expense leverage, a lower tax rate, and a decrease in the weighted average diluted shares outstanding.. The company repurchased 5.5 million shares for approximately $588 million in the first fiscal quarter. As of the end of the first fiscal quarter of 2016, a total of 86.4 million shares had been repurchased for approximately $6.5 billion from a total 4-year program of $8 billion, at an average cost of $75.70 per share. The buyback program was approved in 2012.
Nike’s shares are up more than 28% over the past 12 months, while year-to-date the stock has added about 19.4%.
Shares are getting a solid boost in after-hours trading today, trading up nearly 6% at $121.51, which would be a new 52-week high if it holds through Friday’s market open. The current 52-week range is $79.27 to $117.72. Thomson Reuters had a consensus analyst price target of $122.84 before today’s results were announced.
ALSO READ: Largest Industry in Each State
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.