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.

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