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Nike To Release Earnings Result On Tuesday

Published 03/21/2017, 12:06 AM
Updated 03/09/2019, 08:30 AM

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.

NIKE Daily Chart

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.

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