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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