Nike (NKE) Boosted By Stronger Than Expected Results
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Price: $40.75 -0.37%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.5%
Revenue Growth %: -2.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.5%
Revenue Growth %: -2.2%
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Shares of Nike (NYSE: NKE) are 9% higher today following better than expected Q1 results. Revenues in the quarter grew 17% versus the same period last year and diluted earnings per share decreased 8%.
The company benefited from changes in currency exchange rates, which increased revenue growth by 7%.
Nike reported Q1 EPS of $1.03, 11 cents better than the analyst estimate of $0.92. Revenues for the quarter were $5.4 billion, versus the consensus of $5.19 billion. Nike reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2008 through January 2009, totaling $6.8 billion, 10 percent higher than such orders reported for the same period last year.
During the first quarter, Nike repurchased a total of 7,068,980 shares for approximately $429.8 million as part of a $3 billion buyback plan. On September 22, Nike also announced a new, four-year $5 billion share repurchase program to commence upon the completion of its current $3 billion program.
A number of analysts talked positive about the results. Citigroup said, "Nike proved they can beat expectations both on the top and bottom line through innovation, diversification and discipline... With over $3 in cash on the balance sheet, 8% long term debt to cap and 7.5% of their assets in short term investments they have one of the strongest balance sheets in the sector." Susquehanna said, "These results reinforce our confidence in NKE's ability to grow its top-line and expand its operating margin during FY09 through superior pricing power, product innovation, and category dominance."
Citigroup has a Buy rating and $78 price target on Nike and Susquehanna has a Positive rating and $73 price target on Nike.
Shares of Nike are currently trading at $64.75 with a 52-week range of $51.50-$70.60.
The company benefited from changes in currency exchange rates, which increased revenue growth by 7%.
Nike reported Q1 EPS of $1.03, 11 cents better than the analyst estimate of $0.92. Revenues for the quarter were $5.4 billion, versus the consensus of $5.19 billion. Nike reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2008 through January 2009, totaling $6.8 billion, 10 percent higher than such orders reported for the same period last year.
During the first quarter, Nike repurchased a total of 7,068,980 shares for approximately $429.8 million as part of a $3 billion buyback plan. On September 22, Nike also announced a new, four-year $5 billion share repurchase program to commence upon the completion of its current $3 billion program.
A number of analysts talked positive about the results. Citigroup said, "Nike proved they can beat expectations both on the top and bottom line through innovation, diversification and discipline... With over $3 in cash on the balance sheet, 8% long term debt to cap and 7.5% of their assets in short term investments they have one of the strongest balance sheets in the sector." Susquehanna said, "These results reinforce our confidence in NKE's ability to grow its top-line and expand its operating margin during FY09 through superior pricing power, product innovation, and category dominance."
Citigroup has a Buy rating and $78 price target on Nike and Susquehanna has a Positive rating and $73 price target on Nike.
Shares of Nike are currently trading at $64.75 with a 52-week range of $51.50-$70.60.
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