NIKE First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NIKE (NYSE:NKE) will unveil its latest earnings on Thursday, September 27, 2012. Nike designs and markets high-quality footwear, apparel, equipment, and accessory products throughout the world.

NIKE Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.12 per share, a decline of 17.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.36. Between one and three months ago, the average estimate moved down. It also has dropped from $1.13 during the last month. Analysts are projecting profit to rise by 8.7% versus last year to $5.14.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported profit of $1.17 per share versus a mean estimate of net income of $1.37 per share. In the third quarter of the last fiscal year, the company beat estimates by 4 cents.

Investing Insights: Will New Apple Products Continue to PUMP UP Shares?

A Look Back: In the fourth quarter of the last fiscal year, profit fell 7.6% to $549 million ($1.17 a share) from $594 million ($1.23 a share) the year earlier, missing analyst expectations. Revenue rose 12.2% to $6.47 billion from $5.77 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 5.4% in revenue from the year-earlier quarter to $6.41 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.98 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.21 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.3% to $3.87 billion while assets rose 5.5% to $11.53 billion.

Analyst Ratings: There are mostly holds on the stock with nine of 16 analysts surveyed giving that rating.

Stock Price Performance: Between June 27, 2012 and September 21, 2012, the stock price fell $1.59 (-1.6%), from $98.11 to $96.52. The stock price saw one of its best stretches over the last year between February 21, 2012 and March 5, 2012, when shares rose for 10 straight days, increasing 4.1% (+$4.29) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 4.4% (-$4.30) over that span.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

What is Apple Worth?

Really? The Volcker Act May Get Some Teeth

Fundamental and Technical Indicators Glitter for Gold