Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Nike, Inc. (NYSE:NKE) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.
Nike has been a pioneer in athletic footwear and apparel for a long time, leading the industry since its infancy to become a massive global brand. Yet the top dog faces plenty of competition from hungry rivals aiming to displace the athletic giant. Let’s take an early look at what’s been happening with Nike over the past quarter and what we’re likely to see in its quarterly report on Thursday.
Stats on Nike
|Analyst EPS Estimate||$0.67|
|Change From Year-Ago EPS||11.7%|
|Revenue Estimate||$6.23 billion|
|Change From Year-Ago Revenue||6.6%|
|Earnings Beats in Past 4 Quarters||3|
Will Nike run faster this quarter?
Over the past few months, analysts have had mixed views on Nike. For the just-ended quarter, they’ve cut their earnings-per-share estimates by $0.03, but they’ve added $0.02 per share to their fiscal 2013 calls. The stock, meanwhile, has reflected more optimism, rising 11% since mid-December.
Nike has done a masterful job of building its brand up and leveraging its power to make smart partnerships with sports leagues and endorsement ambassadors. Recognizing the high value of intangibles in the industry, moves such as signing top-ranked golfer Rory McIlroy to its endorsement roster have become part and parcel of the Nike success story.