Leading sportswear retailer and a sponsor of the 2014 FIFA World
) is slated to report its fourth-quarter fiscal 2014 results after
the market closes on Jun 26, 2014. In the last quarter, it posted a
positive surprise of 4.11%. Let's see how things are shaping up for
Factors Influencing this Quarter
Nike has been posting solid quarterly results benefiting from its
focus on innovation, to keep up with customer demand. In spite of
macroeconomic headwinds, the company's results remain impressive,
backed by its continuous practice of exploiting growth
opportunities along with risk management. Going forward, Nike plans
to continue on the same path to enhance shareholder value in the
While currency headwinds keep on affecting the company's bottom
lines, the company projects a strong top line, reflecting a high
single-digit growth for the fourth quarter. Additionally, we
believe the company's top line will gain from the increased
advertising related to the FIFA World Cup held in Brazil. Moreover,
with the soccer World Cup in full swing athletic footwear sales
have improved this summer. The company should also gain from the
recent launch of a new Android app for its FuelBand activity
tracker as well as from the appointment of Reenie Benziger as VP of
its global apparel business.
Our proven model does not conclusively show that Nike is likely to
beat earnings estimates this quarter. This is because a stock needs
to have both a positive
and a Zacks Rank #1, #2 or #3 to surpass earnings estimates.
However, this is not the case here, as you will see below:
ESP (Expected Surprise Prediction) for Nike is 0.00%. This is
because the Most Accurate estimate stands at 76 cents per share,
which is in line with the Zacks Consensus Estimate.
Zacks Rank #3 (Hold):
Nike's Zacks Rank #3 increases the predictive power of ESP.
However, we need to have a positive ESP to be confident about an
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
they have the right combination to post an earnings beat:
) has an Earnings ESP of +7.10% and a Zacks Rank #3.
Apollo Education Group Inc.
) with an Earnings ESP of +3.08% carries a Zacks Rank #3.
) holds an Earnings ESP of +0.72% and a Zacks Rank #3.
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