Nike Takes Aim at All-Time High After Earnings

Companies and Brands

Published: September 24, 2015 4:36 pm

Last Updated: April 28, 2020 2:45 am

Nike Inc.) reported fiscal first quarter 2016 earnings after markets closed Thursday. The athletic gear company reported diluted earnings per share (EPS) of $1.34 on revenue of $8.4 billion. In the same period a year ago, the company reported EPS of $1.09 on revenue of $7.98 billion. First-quarter results compare to the Thomson Reuters consensus estimates for EPS of $1.19 and $8.22 billion in revenue.

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

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.