Will NIKE's (NKE) CDO Strategy Fuel Q1 Earnings Amid Hurdles?
Zacks Investment Research | Sep 22, 2017 08:06AM ET
NIKE, Inc. (NYSE:NKE) is slated to release first-quarter fiscal 2018 results on Sep 26. The question lingering in investors’ minds is whether this athletic goods behemoth will be able to post a positive earnings surprise in the quarter to be reported. Notably, NIKE has delivered positive earnings surprises for 20 straight quarters. In the trailing four quarters, the company delivered an average positive surprise of 25%. So, let’s see how things are shaping up prior to this announcement.
What to Expect?
The current Zacks Consensus Estimate for the quarter under review is pegged at 48 cents, which is way below the year-ago period figure of 73 cents. We note that the Zacks Consensus Estimate has remained nearly stable over the past 30 days. Additionally, analysts polled by Zacks expect revenues of roughly $9.1 billion, up slightly by 0.2% from the year-ago quarter.
Factors at Play
NIKE’s progress on its strategic initiatives has been reflected in every quarter’s results for over three fiscal years now. The company has been gaining from its robust growth and innovation efforts, which along with reduced expenses fueled the bottom line in the last quarter. The company is also benefiting from strong e-commerce initiatives. Notably, the enhancement of digital platform has led NIKE to nearly double its revenue contributions from NIKE.com and its apps in just two years, going over the $2 billion contribution mark in fiscal 2017. Incidentally, global Direct-to-Consumer businesses and growth at international locations largely augmented NIKE’s top line in fourth-quarter fiscal 2017.
Nike, Inc. Price and EPS Surprise
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