Nike (NKE - Analyst Report) released its earnings report today for the fourth quarter of its fiscal year ending May 31, 2015, and the numbers were better than what analysts had projected. The company reported an EPS beat of $0.98 per share, up 26% for the quarter, with analysts only looking for $0.84 per share.
The company also saw a boost in revenues of 5% to $7.8 billion according to its report, which is also higher than previous projections of $7.7 billion. Its fiscal revenues for 2015 were also up, increasing 10% for the year to $30.6 billion. Its future orders globally also beat analysts’ projections, increasing 13%, where as it was projected for 11%.
Nike and investors were extremely pleased by the results, with Nike President and CEO Mark Parker saying, "Fiscal 2015 was an outstanding year". The company attributes its success and increase in growth to broad-based revenue growth, gross-margin expansion, and a lower tax rate more than offset increased SG&A investments.
The beating of analyst estimates comes at a time where NIKE continues to be in a position for growth. Just recently the company agreed to a deal with the National Basketball Association to become the league's sole on-court apparel designer starting in 2018. It also is a leading sponsor of the Women's World Cup this summer, which will contribute to marketing the brand internationally.
NIKE continues to be a valid option for investment with its continued growth in its sales both in the U.S. and internationally, and the company does not seem ready to let that discontinue. In the words of Parker via the company's release, "At no time in our history has the growth potential been greater for NIKE".
Despite efforts from competitors like Under Armour (UA - Analyst Report) and Adidas (ADDYY - Snapshot Report), NIKE continues to be successful in its ventures and shows no signs of giving away its dominant share of the sports apparel market to its competitors anytime soon.
Check back tomorrow for our full in-depth write-up on the Nike earnings report!
Nike Soars Past Earnings Estimates, Stock Up After-Hours
Nike released its earnings report today for the fourth quarter of its fiscal year ending May 31, 2015, and the numbers were better than what analysts had projected. The company reported an EPS beat of $0.98 per share, up 26% for the quarter...
Disclosure:
Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific securities do not constitute an offer to buy or sell securities. The past performance of a mutual fund, stock, or investment strategy cannot guarantee its future performance. For complete disclosure see http://www.zacks.com/disclosure.
Comments
Log in or sign up to join the conversation.