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Tickers in this Article: NKE
NIKE (NYSE:NKE) will announce its second quarter earnings on Thursday, December 20, 2012.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Surprising Earnings Results

What to Expect: NIKE is expected to report earnings of $1 per share, unchanged from last year.

The consensus estimate has risen over the past month, from 99 cents, but it is still below the estimate of $1.01 from three months ago. For the fiscal year, analysts are expecting earnings of $5.24 per share.

NIKE is expected to beat last year's reported revenue of $5.73 billion and come in at $5.99 billion for the quarter. Revenue for the fiscal year is expected to come in at $25.3 billion.

Company Performance: The last two quarters have marked year-over-year rises in revenue. It increased 9.7% to $6.67 billion in first quarter and 12.2% in the quarter before.

NKE's P/E ratio is 21.1. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Profit With The Power Of Price-To-Earnings

The stock price has dipped over the past quarter just slightly to $96.91 from $97.72 on September 18, 2012. October 18, 2012 to October 23, 2012 marked one of NIKE's worst periods, as the share price fell $4.75.

The Competition: Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world. Nine of 16 analysts rate NIKE a hold. This rating has been constant for the past three months.

The company's closest competitor in the footwear industry is Deckers (DECK). Analysts are less optimistic about NIKE than about Deckers. Seven out of 13 analysts rate the latter a buy compared to seven of 16 for the former.

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