Free Annual Reports
Nike Second Quarter Earnings
Tickers in this Article »
NKE
Nike (NYSE:NKE) announced its results for the most recent quarter on December 20, 2012. Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
The Numbers: Nike's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported adjusted net income of $1.14 per share versus the $1 per share estimate and revenues of $6 billion versus the $6.51 billion estimate. EPS rose 10.7% while revenue climbed 4.7% from the same period last year. Nike's revenue has grown during each of the past four quarters on a year-over-year basis. Nike reported net income of $384 million during the second quarter. This is a 18.1% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 12.1% in the first quarter and 7.6% in the fourth quarter of the last fiscal year.
Management Quote: "Our strong second quarter results show that our growth strategies are working, even under challenging macroeconomic conditions," said Mark Parker, President and CEO, NIKE, Inc. "We have a focused and flexible portfolio that allows us to target the biggest growth opportunities at all levels - brand, category and product. We stay connected with our consumers and that enables us to deliver innovations that excite the marketplace, grow the business and deliver more value to shareholders."
A Look Back: Last quarter, gross margins grew to 42.9%, a 0.2 percentage point difference from the year-earlier quarter. This ends a streak of two consecutive quarters of shrinking margins.
Net income has dropped 5.6% year-over-year on average across the last five quarters. Performance was hurt by an 18.1% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Analysts are pessimistic about the company's results for the next quarter. The average estimate has fallen for the third quarter to $1.40 per share, down from $1.41 seven days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past three months, the average estimate for the fiscal year has climbed from $5.14 per to share to $5.24.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
The Numbers: Nike's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported adjusted net income of $1.14 per share versus the $1 per share estimate and revenues of $6 billion versus the $6.51 billion estimate. EPS rose 10.7% while revenue climbed 4.7% from the same period last year. Nike's revenue has grown during each of the past four quarters on a year-over-year basis. Nike reported net income of $384 million during the second quarter. This is a 18.1% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 12.1% in the first quarter and 7.6% in the fourth quarter of the last fiscal year.
Management Quote: "Our strong second quarter results show that our growth strategies are working, even under challenging macroeconomic conditions," said Mark Parker, President and CEO, NIKE, Inc. "We have a focused and flexible portfolio that allows us to target the biggest growth opportunities at all levels - brand, category and product. We stay connected with our consumers and that enables us to deliver innovations that excite the marketplace, grow the business and deliver more value to shareholders."
A Look Back: Last quarter, gross margins grew to 42.9%, a 0.2 percentage point difference from the year-earlier quarter. This ends a streak of two consecutive quarters of shrinking margins.
Net income has dropped 5.6% year-over-year on average across the last five quarters. Performance was hurt by an 18.1% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Analysts are pessimistic about the company's results for the next quarter. The average estimate has fallen for the third quarter to $1.40 per share, down from $1.41 seven days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past three months, the average estimate for the fiscal year has climbed from $5.14 per to share to $5.24.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=3e3565c0fc737c12aea42704939c636b
