Nike to Release 2nd Quarter Financial Results for Fiscal 2018

Analysts expect an 18% decline in earnings and 2.7% growth in sales

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NIKE Inc. (NKE, Financial) will release financial results for the second quarter of its fiscal 2018 Thursday, Dec. 21, after the New York Stock Exchange closes.

For the quarter, analysts expect Nike will report EPS of 41 cents. This is an 18% decline compared to EPS one year ago and a mean of 32 estimates.

The estimates range between a low of 35 cents and a high of 58 cents, as illustrated in the Yahoo Finance chart below:

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Source: Yahoo Finance

Second quarter earnings come on the back of revenue that is forecasted on average to come in at $8.4 billion. This represents a 2.70% increase compared to the prior-year quarter.

Thirty analysts were surveyed on Nike’s second quarter revenue and they ranged between a low of $8.3 billion and a high of $8.48 billion.

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Source: Yahoo Finance

For the full fiscal 2018 to full fiscal 2019 period, analyst forecast Nike’s sales will grow 14.6%. For the next five-year period, analysts forecast sales will grow annually at an average rate of 8.59%.

GuruFocus gives Nike a profitability & growth rating of 8 out of a total of 10.

The next two charts illustrate the trend in Nike’s sales on a quarterly and yearly basis over the last five reporting periods:

Chart 1. Nike’s sales over the last five quarters:

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Chart 2. Nike’s sales over the last five fiscal years:

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Concerning the financial situation, GuruFocus assigns Nike a financial strength rating of 7 out of 10.

Nike is trading at $64.81 on the NYSE and for the 52-weeks through Dec. 18, the stock has gained 25%, outperforming the S&P 500 index by 5.85%:

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Source: Yahoo Finance

Nike has a market capitalization of $105.74 billion, a price-book (P/B) ratio of 8.84 versus an industry median of 1.76, a price-earnings (P/E) ratio of 27.59 versus an industry median of 20.20 and a price-sales (P/S) ratio of 3.16 versus an industry median of 1.08.

The stock’s share price is above the Peter Lynch earnings line with and without NRI.

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The forward P/E ratio is 28.33 versus an industry median of 17.01.

Nike has a forward dividend of 80 cents and forward yield of 1.24%.

Disclosure: I have no positions in Nike.