Nike Earnings Cheat Sheet: Profit Increases Again, Stock Up 5%

S&P 500 (NYSE:SPY) component Nike Inc. (NYSE:NKE) reported net income above Wall Street’s expectations for the first quarter. Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world.

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Nike Earnings Cheat Sheet for the First Quarter

Results: 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.

Actual vs. Wall St. Expectations: NKE beat the mean analyst estimate of $1.21 per share. It beat the average revenue estimate of $5.75 billion.

Quoting Management: “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.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 13.8% and in the third quarter of the last fiscal year, the figure rose 5.4%.

Gross margin shrank 2.7 percentage points to 44.3%. The contraction appeared to be driven by increased costs, which rose 23.6% from the year earlier quarter while revenue rose 17.5%.

Revenue has risen the past four quarters. Revenue increased 13.6% to $5.77 billion in the fourth quarter of the last fiscal year. The figure rose 7.3% in the third quarter of the last fiscal year from the year earlier and climbed 9.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of $1.24 versus a mean estimate of net income of $1.16 per share.

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).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)