Nike To Release Earnings Result On Tuesday
Trade12 | Mar 21, 2017 12:06AM ET
After the closing bell on Tuesday, Nike Incorporated (NYSE:NKE) will be reporting its financial data for the fiscal quarter ending February 2017. Market players are looking forward in the capability of the company to carry its previous momentum into the back half of the fiscal year and beyond.
The leading footwear and athletic apparel retailer company is expected to highlight its sales growth and rising profitability after the launch of new products. Investors bet that the company may surprise the market again with its figures after the better-than-expected earnings result in the previous quarters.
Among the factors to be considered in the optimistic outlook for Nike will be its successful collaboration with celebrities, continuous product innovation, improved pricing of its premium products and the NB license take over in the second half of 2017. Adding to the bullish tone for the Nike is its healthy competition against Adidas (OTC:ADDYY) and Under Armour (NYSE:UAA).
Based on the current data of Zacks Investment Research, the company received consensus earnings per share estimate of $0.52. However, other experts raised their expectations for the third quarter performance of Nike, leaving the majority of them to a consensus EPS estimate of $2.34.
In the last quarter, the footwear juggernaut reported revenue of $8.2 billion, up by 6 percent and advanced 8 percent on a currency neutral basis. Its diluted earnings per share went up 11 percent to $0.50 while its inventories also increased 9 percent as of November 2016.
This quarter’s financial report will be highly influenced by the sales during the holiday seasons. In the same quarter in 2016, the company had a robust growth in revenue, advancing 8 percent to $8 billion and 14 percent growth excluding currency changes. The worldwide futures orders rallied 12 percent and inventories climbed 8 percent during that period.
Chief Executive Officer Mark Parker lauded the strength of the company’s pipeline with its new cushioning experiences in Running and Basketball, digitally integrated product, advancements in customization and personalization and breakthroughs in lightweight performance.
Covering the near, medium and long-term horizons, we've created both platforms in category-defining products designed in a distinctive style that spans all categories. We're driving a pace and a scale of innovation that will deliver growth for years to come.
The effects of these adaptive products and innovations are widely expected to be seen in the result of the third quarter report.
Stock Movement
Last Friday, Nike Inc remained flat at $57.60 kept its bullish run. The stock has a market capitalization of $95.20 billion, significantly higher than Under Armour’s $8.48 billion and Adidas’ $38.47 billion. Nike had a price earnings ratio of 25.42 and dividend yield of 1.25 percent.
Get The News You Want
As seen in the image above, Nike ran on a bullish path from December 2016 to February 2017. The stock commenced from 50.22 levels and reached as high as 58.27 in the latter part of February. The upward momentum will likely remain, given that the Company can pull off another upbeat result. Positive financial reports catch the attention of the investors and Nike will probably surprise the market once again.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.