MADRID, SPAIN – JANUARY 22: Alicia wears Nike trainers and Calzedonia tousers on January 22, 2017 in Madrid, Spain. (Photo by Pablo Cuadra/Getty Images)
Nike Inc. is scheduled to report earnings after Tuesday’s close. Nike’s stock hit a record high of $68.19/share in 2015 and is currently trading near $57/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Nike is expected to earn $0.52/share on $8.45 billion in revenue. Meanwhile, the so-called Whisper number is $0.55. The Whisper number is the Street’s unofficial view on earnings.
Company Profile & Various Busines ses:
Here is a brief company profile courtesy of Thomson Reuters Eikon:
NIKE, Inc., incorporated on September 8, 1969, is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company’s operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. The Company’s portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. The Company sells its products to retail accounts, through its retail stores and Internet Websites, and through a mix of independent distributors and licensees across the world. The Company’s products are manufactured by independent contractors.
As of May 31, 2016, the Company focused its NIKE brand product offerings in nine categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear (its sports-inspired lifes tyle products) and Golf. Men’s Training includes its baseball and American football product offerings. The Company also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities. The Company’s athletic footwear products are designed primarily for specific athletic use. Its products are also worn for casual or leisure purposes. The Company also sells sports apparel. The Company also markets apparel with licensed college and professional team and league logos.
The Company sells a range of performance equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs and other equipment designed for sports activities. The Company also sells a range of plastic products to other manufacturers through its subsidiary, NIKE IHM, Inc. NIKE IHM, Inc. manuf actures Air-Sole cushioning components at the Company-owned facilities located near Beaverton, Oregon and in St. Charles, Missouri. The Company’s Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories focused on basketball using the Jumpman trademark. The Company’s Hurley brand designs and distributes a range of action sports and youth lifestyle apparel and accessories under the Hurley trademark. The Company’s brand, Converse, designs, distributes and licenses casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks. Converse Direct to Consumer operations include e-commerce business.
The Company competes with Adidas, ASICS, Li Ning, lululemon athletica, Puma, V.F. Corporation, Under Armour, and other footwear and apparel companies.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most importa nt trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.