), a global leader in sports equipment and apparel is expected to
report its financial results for the first quarter of fiscal 2013
after the market closes on Thursday, September 27, 2012. The Zacks
Consensus Estimate for the quarter is $1.12 per share. This
represents a year-over-year reduction of approximately 17.5%. For
the quarter under review, revenue is expected to be $6,438 million,
according to the Zacks Consensus Estimate.
With respect to earnings surprises, Nike has topped the estimate
thrice over the trailing four quarters in the range of negative
14.6% to 12.4%. The average surprise over the last four quarters
remained positive at 1.1%.
Fourth Quarter Fiscal 2012 - a synopsis
Nike posted earnings of $1.17 per share in the fourth quarter of
fiscal 2012, dipping 6% year over year. Quarterly earnings also
missed the Zacks Consensus Estimate of $1.37 per share by a huge
margin. Diminished gross margin, higher SG&A expenses,
increased tax rate and expenses associated with restructuring of
NIKE Brand Western Europe's operations played spoilsports during
In the fourth quarter, Nike's total revenue grew 12.2% to $6,470
million from $5,766 million in the prior-year quarter, primarily
driven by growth in all key categories, products and geographies of
NIKE Brand. Revenue for the quarter, however, lagged the Zacks
Consensus Estimate of $6,488 million.
The analysts following the stock expect Nike to post
first-quarter fiscal 2013 earnings of $1.12 a share, lower than
$1.36 delivered in the prior-year quarter. Currently, the Zacks
Consensus Estimate ranges between $1.00 and $1.16 a share. We
believe due to rising commodity costs estimates for the quarter has
been expected below than the year-ago quarter.
Earnings Estimate Revisions
We do not see any major estimate revisions at this point for the
first quarter of fiscal 2013. Of the 14 estimates, only one revised
downward, while none moved in the opposite direction in the last 30
days, for the first quarter. In the last 7 days, no movement in
estimates noticed in either direction for the quarter.
The magnitude of estimate revisions for Nike depicts a
pessimistic outlook for the upcoming quarter. Over the last 7 days,
estimates for the upcoming quarter remained unchanged while it was
lowered by a penny to $1.12 per share in the last 30 days.
In an attempt to expand its global reach and market share, Nike
is aggressively expanding its operations in the emerging markets
while focusing on direct-to-consumer business and other brands,
which augur well for future operating performance. Moreover, the
company's near-to-debt-free balance sheet offers financial
However, sluggish discretionary spending and intense competition
amid rapidly changing customer preferences will continue to weigh
upon the company's future operating performance. Nike faces intense
competition in both domestic and international markets from local
as well as established players, such as Adidas AG (including
Brown Shoe Company Inc.
Currently, Nike maintains a Zacks #3 Rank, which translates into
a short-term Buy rating.
BROWN SHOE CO (BWS): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
PVH CORP (PVH): Free Stock Analysis Report
To read this article on Zacks.com click here.