NIKE Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NIKE (NYSE:NKE) will unveil its latest earnings on Thursday, December 20, 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 per share, no change 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 $1.01. Between one and three months ago, the average estimate moved down. It has risen from 99 cents during the last month. Analysts are projecting profit to rise by 10.8% compared to last year’s $5.24.

Last quarter, the company came in at profit of $1.27 per share against a mean estimate of net income of $1.12 per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 20 cents.

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A Look Back: In the first quarter, profit fell 12.1% to $567 million ($1.23 a share) from $645 million ($1.36 a share) the year earlier, but exceeded analyst expectations. Revenue rose 9.7% to $6.67 billion from $6.08 billion.

Stock Price Performance: From November 15, 2012 to December 14, 2012, the stock price rose $6.08 (6.7%), from $90.83 to $96.91. 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 September 17, 2012 and September 25, 2012 when shares fell for seven straight days, dropping 2.9% (-$2.89) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 4.5% in revenue from the year-earlier quarter to $5.99 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 12.2% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.95 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.

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