2 Widely Held Stocks to Watch After Earnings: NKE, DFS

Nike Inc. (NYSE:NKE) reported net income above Wall Street’s expectations for the first quarter. Net income for Nike Inc. rose to $645 million ($1.36 per share) vs. $559 million ($1.14 per share) in the same quarter a year earlier. This marks a rise of 15.4% from the year earlier quarter. Revenue rose 17.5% to $6.08 billion from the year earlier quarter. NKE beat the mean analyst estimate of $1.21 per share. It beat the average revenue estimate of $5.75 billion.

“We’re off to a strong start in fiscal year 2012. We have a powerful and diverse portfolio of brands and businesses, and we’re focused on leveraging them to drive growth and create value for our shareholders,” said Mark Parker, President and CEO, NIKE, Inc. “It pays to be prudent in times like these. It’s also essential that we remain on the offense, creating opportunities. We do that by connecting with consumers, designing innovative products and delivering amazing experiences. That’s how we continue to lead this company and the industry into the future.”

Competitors to Watch: Crocs, Inc. (NASDAQ:CROX), Deckers Outdoor Corp. (NASDAQ:DECK), Skechers USA, Inc. (NYSE:SKX), K-Swiss Inc. (NASDAQ:KSWS), Steven Madden, Ltd. (NASDAQ:SHOO), The Timberland Company (NYSE:TBL), The Global Housing Group (GLHO), adidas AG (ADDYY), LaCrosse Footwear, Inc. (NASDAQ:BOOT), and Phoenix Footwear Group, Inc. (AMEX:PXG).

Discover Financial Services (NYSE:DFS) reported net income above Wall Street’s expectations for the third quarter. Net income for Discover Financial Services rose to $649 million ($1.18 per share) vs. $260.6 million (47 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. DFS beat the mean analyst estimate of 91 cents per share.

“We achieved record results again this quarter as a result of further improvements in credit performance and record sales volume,” said David Nelms, chairman and chief executive officer of Discover. “In addition, we are very pleased to report the reemergence of year-over-year growth in Discover card receivables and continued strong growth in our personal loan and private student loan businesses. Our strong capital position has allowed us to continue to invest in growth. We also repurchased more than eight million shares in the quarter.”

Competitors to Watch: American Express Company (NYSE:AXP), Capital One Financial Corp. (NYSE:COF), Visa Inc. (NYSE:V), SLM Corporation (NYSE:SLM), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), Bank of America (NYSE:BAC), J.P. Morgan (NYSE:JPM), Nelnet, Inc. (NYSE:NNI), CompuCredit Holdings Corp (NASDAQ:CCRT), and The Student Loan Corp. (NYSE:STU).