The 10-second takeaway
For the quarter ended May 31 (Q4), Nike met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Nike reported revenue of $6.70 billion. The 21 analysts polled by S&P Capital IQ expected to see a top line of $6.64 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.76. The 25 earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. Non-GAAP EPS of $0.76 for Q4 were 29% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.73 for Q4 were 24% higher than the prior-year quarter's $0.59 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 43.9%, 110 basis points better than the prior-year quarter. Operating margin was 13.7%, 160 basis points better than the prior-year quarter. Net margin was 10.0%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.97 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $27.54 billion. The average EPS estimate is $3.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,353 members out of 2,473 rating the stock outperform, and 120 members rating it underperform. Among 748 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 726 give Nike a green thumbs-up, and 22 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 $63.16.
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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.