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NIKE First Quarter Earnings Preview
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NKE
When NIKE (NYSE:NKE) releases its first quarter earnings on Thursday, September 27, 2012, analysts are expecting a 17.6% drop in earnings from a year ago. The consensus estimate is $1.12 per share, down from earnings of $1.36 per share a year ago.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
What to Expect: Whereas the consensus estimate was $1.36 three months ago, it has since fallen. Analysts are expecting earnings of $5.14 per share for the fiscal year.
Revenue is expected to exceed last year's figure of $6.08 billion by 5.4% and come in at $6.41 billion for the quarter. NIKE is expected to report revenue of $25.29 billion for the fiscal year.
Company Performance: NKE's P/E ratio of 20.4 is under the industry average of 29.48. A low P/E ratio may indicate that the market expects relatively slower earnings growth. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
The stock price has fallen 2% to $96.52 from $98.45 since June 26, 2012. NIKE's stock price is on a downward streak. The share price has fallen $1.45 since September 17, 2012.
The Competition: Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world. Analysts generally consider NIKE a hold, with nine of 16 analysts rating it as such.
The company's closest competitor in the footwear industry is Steven (SHOO). Analysts are less optimistic about NIKE than about Steven. Five out of seven analysts rate the latter a buy compared to seven of 16 for the former.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
What to Expect: Whereas the consensus estimate was $1.36 three months ago, it has since fallen. Analysts are expecting earnings of $5.14 per share for the fiscal year.
Revenue is expected to exceed last year's figure of $6.08 billion by 5.4% and come in at $6.41 billion for the quarter. NIKE is expected to report revenue of $25.29 billion for the fiscal year.
Company Performance: NKE's P/E ratio of 20.4 is under the industry average of 29.48. A low P/E ratio may indicate that the market expects relatively slower earnings growth. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
The stock price has fallen 2% to $96.52 from $98.45 since June 26, 2012. NIKE's stock price is on a downward streak. The share price has fallen $1.45 since September 17, 2012.
The Competition: Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world. Analysts generally consider NIKE a hold, with nine of 16 analysts rating it as such.
The company's closest competitor in the footwear industry is Steven (SHOO). Analysts are less optimistic about NIKE than about Steven. Five out of seven analysts rate the latter a buy compared to seven of 16 for the former.
by
Investopedia Staff
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