Whether it's LeBron or something else entirely, a strong third-quarter profit forecast has Nike (NYSE:NKE) shares hopping.
Nike, which reports results next Thursday, said this morning that third-quarter earnings would jump more than 50% year over year from between $0.71 to $0.74 per share, well ahead of the $0.64 per share analysts estimated. Meanwhile, revenues will gain more than 20%, putting that figure near $2.9 billion.
The company attributes the better-than-expected performance to strength in both the U.S. and Asia Pacific regions, as well as a continued benefit from currency exchange rates in Europe. While year-over-year comparisons were helped by the fact that "prior year revenues were unusually low" due to the timing of shipments, one thing is clear: Nike is in pretty good shape.
One issue awaiting resolution is Nike's soured relationship with Foot Locker (NYSE:FL). However, indications point to warming relations, which investors anticipate could have Nike's high-end shoes back on Foot Locker's shelves in the coming quarters. When that happens, Nike's business in the U.S. could see a further boost.
Great as it sounds, the improving business and smoother relationship with Foot Locker are likely priced into the stock's more than 60%, 52-week run-up. After another 3% pop to $76.59 in early afternoon trading today, Nike, like LeBron, has some big expectations to live up to.
For more, check out the Nike discussion board.
Fool contributor Jeff Hwang owns neither of the companies mentioned above.
