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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Nike and recommends the following options:Long Jan 2015 $32 Calls on Nike and Long Jan 2015 $65 Calls on Nike. The Motley Fool owns shares of Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.