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Nike Fourth Quarter Earnings
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NKE
Nike (NYSE:NKE) announced its results for the most recent quarter on June 28, 2012. Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings
The Numbers: Nike missed estimates with $1.17 per share and revenues of $6.47 billion. Analysts were expecting $1.37 per share and revenues of $6.51 billion. EPS fell 4.9% while revenue climbed 12.2% from the same period last year. Nike has averaged revenue growth of 15.4% over the past five quarters. Nike reported net income of $549 million during the fourth quarter. This is a 7.6% decline from last year. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: "Fiscal year 2012 demonstrated NIKE, Inc.'s greatest strength - innovation. We delivered an amazing number of game-changing products and services that drove record revenue growth," said Mark Parker, President and CEO, NIKE, Inc. "We also delivered solid profit growth for the year despite some headwinds in a challenging global economy, which will continue into the next year. That said, NIKE is well positioned and will remain aggressive, flexible and laser-focused on the high-growth opportunities. That's how we continue to deliver long-term profitable growth for our shareholders."
A Look Back: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.5 percentage points to 42.8% from the year-earlier quarter. Over that time, margins have contracted on average 2.4 percentage points per quarter on a year-over-year basis.
Net income has increased 6.3% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 15.4% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.47 a share to $1.35 over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has been unchanged at $4.94 a share.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings
The Numbers: Nike missed estimates with $1.17 per share and revenues of $6.47 billion. Analysts were expecting $1.37 per share and revenues of $6.51 billion. EPS fell 4.9% while revenue climbed 12.2% from the same period last year. Nike has averaged revenue growth of 15.4% over the past five quarters. Nike reported net income of $549 million during the fourth quarter. This is a 7.6% decline from last year. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: "Fiscal year 2012 demonstrated NIKE, Inc.'s greatest strength - innovation. We delivered an amazing number of game-changing products and services that drove record revenue growth," said Mark Parker, President and CEO, NIKE, Inc. "We also delivered solid profit growth for the year despite some headwinds in a challenging global economy, which will continue into the next year. That said, NIKE is well positioned and will remain aggressive, flexible and laser-focused on the high-growth opportunities. That's how we continue to deliver long-term profitable growth for our shareholders."
A Look Back: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.5 percentage points to 42.8% from the year-earlier quarter. Over that time, margins have contracted on average 2.4 percentage points per quarter on a year-over-year basis.
Net income has increased 6.3% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 15.4% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.47 a share to $1.35 over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has been unchanged at $4.94 a share.
by
Investopedia Staff
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