Nike, Inc. Expected To Report Even Better Earnings For the Upcoming Quarter

The sports apparel and footwear giant is on a roll as it reports increase in its sales in a number of major regions.

For the current year, Nike, Inc. has been the best performer on the Dow Jones Industrial Average Index as it manages to beat the earnings expectations of analysts and investors in its most recent quarter of the current fiscal year. The sports and apparel wear giant has managed to do buy higher sales and orders. These results of the market leader in sports indicate more orders in the future and growth in the Chinese market.

In the second quarter, the analysts and stock experts had estimated earnings per share of 89 cents for Nike Stock which it managed to beat by reporting earnings per share of 90 cents. These earnings were for the second quarter of the current fiscal year, which ended on November 20, 2015. It’s safe to say that the American multinational corporation has been doing quite well in all the markets, as it has managed to report profits for fourteen consecutive quarters.

Furthermore, future orders rose by 20% in comparison to the estimates which showed an increase at 13.6%, excluding the currency effects, for the most recent quarter. The current orders that have been placed are scheduled to be delivered between December 2015 to April 2016; through these orders the market leader in sports will make good profits and huge gains because any order placed before 90 days gets good discounts.

In China, the future orders have increase by 34% which again surpassed the estimates that were at 22%. The revenue of the sportswear company has increased by 24% and is currently at $938 million in the Chinese market. In Chine over 100 million citizens are fans of the National Basketball Association (NBA)  due to which the market leader has managed to gain popularity during the sports season. In the 2^nd quarter, the sales for footwear in the region increased to $600 million indicating an increase of 30% and the sales for sports apparel increased by 15% to 306 million.

As for the other regions, in America the footwear sales hiked to $1.22 billion, showing an increase 18%. This increase in the region was mainly witnessed because of the latest trend of “athleisure”. In the e-commerce sector, it gained 50% by expanding the online business operations in Switzerland, Canada and Norway. The multinational organization has big plans for the next quarter as it plans to launch its e-commerce business in Chile, Turkey and Mexico.

Analysts are expecting the revenue to grow by 8.2% while the earnings per share is likely to be $1.03. According to the estimations the revenue is likely to be at 8.13 billion.

Decline Witnessed At Nike, Inc.

Nike Inc saw a decline in the market capitalization on Monday

A decline in the market capitalization of Nike, Inc. was observed in the most recent trading session that took place on Monday, November 23, 2015. The apparel and footwear manufacturer’s stock was being traded at a share price of $132.46 which was a decline of 0.14%.

As per the details of the trading session, the highest share price that was witnessed in the intraday trading was $133 whereas the lowest was $131.82. There was a drop of approximately 0.19 points on Monday. The volume of shares towards the end of the session was 3,567,781. The current market capital of Nike, Inc. is $112,882 million.

In a time span of one year Nike’s stock had gone up by 35.43% from its current 52-week high record which is $133.52. On the other hand, the 52-week low share price of the apparel manufacturer is $90.69; this low share price was seen on February 9 of the present fiscal year. The one year high was recorded on October 19, 2015.

During the intraday trading session on Monday, the stock was being traded negatively at $132.46 with a composite uptick figure of $129.75 million and a downtick figure of $102.34. The change in the stock in the past seven days was of -0.14%. The earnings per share that were reported by the sportswear and footwear manufacturer were $3.96 with a price to earnings ratio of 33.45.

Additionally, quite a few stock experts have commented on the sportswear company’s stock out of which BB&T Capital, a research and brokerage firm has upgraded the rating for the company. From an initial rating of Hold, Nike’s stock is at a rating of Buy now, as par the reported issued by the firm on October `19, 2015.

Furthermore, Insider Trading was witnessed at Nike when the Securities and Exchange Commission reported that Jackson Jeanne, the president of product and merchandise sold shares of the company. This transaction was of $1,529,125 as the shares sold were 12,500 at a share price of $122.33 per share. Approximately, 3.7% of the stock of the company is owned by Insiders, while 65.05% of the stock if owned by Institutional Investors, as stated in the proxy statement.

In three months’ time the change in the stock owned by the insiders was -4.8% while the change witnessed in the stock owned by the Institutional investors was -8.03%.  On a separate note, according to news the company has even understated its earnings for the sole reason of global nature of the company’s operations.