By
Ryan Fuhrmann, CFA
|
More Articles
September 26, 2006
|
On Thursday, Sept. 21, Nike (NYSE: NKE ) released Q1 2007 earnings for the period ended Aug. 31. Here's a summary of the high-level numbers that caused a major move in the stock price.
- Sales advanced 9% to $4.2 billion. Analysts applauded strong results in all major regions (U.S., Europe, Asia/Pacific, the Americas) and across most major product categories (footwear, apparel, equipment)
- Net income fell 13% to $377.2 million, while diluted earnings fell 9% to $1.47 per share. Most of the downfall came because Nike began expensing employee stock options.
- Nike continues to buy back a hefty portion of outstanding stock; it repurchased 6 million shares during the quarter for $476.7 million, completing a $1.5 billion buyback started back in June 2004. It also started a new $3 billion repurchase program approved in June 2006.
(Figures in thousands/millions, except per-share data)
Income Statement Highlights
|
Avg. Est.
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$4,160
|
$4,194
|
$3,862
|
8.6%
|
|
Net Profit
|
--
|
$377
|
$432
|
(12.7%)
|
|
EPS
|
$1.42
|
$1.47
|
$1.61
|
(8.7%)
|
|
Diluted Shares
|
--
|
256
|
269
|
(4.7%)
|
Get back to basics with a look at the income statement.
Margin Checkup
*Expressed in percentage points.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$1,725
|
$1,893
|
(8.9%)
|
|
Accounts Rec.
|
$2,569
|
$2,391
|
7.5%
|
|
Inventory
|
$2,134
|
$1,851
|
15.3%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$868
|
$708
|
22.5%
|
|
Long-Term Debt
|
$380
|
$428
|
(11.2%)
|
Learn the ways of the balance sheet.
Cash Flow Highlights
Nike tripped on its laces here, neglecting to include a cash flow statement in the release. First-quarter cash flow information will be available as soon as Nike follows up with its SEC 10-Q form for the quarter.
Find out why Fools always follow the money.
Related Companies:
-
K-Swiss (Nasdaq: KSWS )
-
Steve Madden (Nasdaq: SHOO )
-
Foot Locker (NYSE: FL )
-
Kenneth Cole (NYSE: KCP )
-
Deckers Outdoor (Nasdaq: DECK )
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check
Fool.com
for more of our in-depth discussion of what the numbers mean.
For companies that are going for great prices, check out the
Motley Fool Inside Value
newsletter. Try a free 30-day trial here.
Fool contributor Ryan Fuhrmann is long shares of Nike, but has no financial interest in any other company mentioned. Feel free to
email
him with feedback or to further discuss any companies mentioned. Deckers Outdoor is a
Motley Fool Hidden Gems
recommendation. The Fool has an ironclad
disclosure policy
.
RSS Headlines
Fool UK