Nike Earnings Recap

 
       Unless you've been living under a rock- Nikes Colin Kaepernick advertisement has stirred up a lot of controversy the last few weeks. Nike has been the center of controversy a few times, but this time it seems different. They released their quarter three earnings report and I was pleasantly surprised.


       For the fourth quarter in a row they have surpassed the estimated earnings per share. The actual EPS was $0.67 compared to the $0.62 expected. An 8% beat. Which represents A 16% average beat in the last four quarters. One of the best runs Nike has been on in recent history.

       On top of the earning per share beat- they also grew revenue by over 10%. Which is expected to continue to grow thanks to their converse brand which is up 7% in large part by their growing popularity in Asia and Europe.

       In fact their footwear has really taken off .. again.

Footwear by regionNorth America- +5%
Europe, Middle East and Africa- +10
Greater China- +22%
Asia Pacific and Latin America- +14%


The company has been putting their increasing revenue to good use- Cash and equivalent and short term investments are from $4.3 billion to $1.3 due in large part by their dividends and share buy back program. This quarter the spent $1.4 billion on shares for the buy back program. The program was approved by board of directors in 2015. They are expecting to buy 12 billion worth of shares.


Despite the good numbers the put up shares still fell 3% early Wednesday morning. But the sell off seems like nothing but an over reaction. The numbers were solid and they have a healthy balance sheet to mix with their buy back program I personally would rate this stock a buy.. with a price target around the mid 90s.


  
 


 
 
 




       

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