The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Nike met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Nike notched revenue of $6.19 billion. The 20 analysts polled by S&P Capital IQ anticipated revenue of $6.22 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $5.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. Non-GAAP EPS of $0.73 for Q3 were 22% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.95 for Q3 were 58% higher than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.2%, 40 basis points better than the prior-year quarter. Operating margin was 14.1%, 110 basis points better than the prior-year quarter. Net margin was 14.0%, 440 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.62 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $25.37 billion. The average EPS estimate is $2.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,324 members out of 2,448 rating the stock outperform, and 124 members rating it underperform. Among 696 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 677 give Nike a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nike is outperform, with an average price target of $55.38.
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