Nike Inc. (NKE, Financial) will release its financial results for the first quarter of fiscal 2018 after the market closes on Sept. 26.Â
For the quarter, analysts estimate the company will report a 34.2% year-over-year decrease in earnings, which is forecasted to be 48 cents per share. Nike recorded EPS of 73 cents in the year-ago quarter.
Source: Yahoo Finance
Thirty-two analysts were surveyed on Nike’s earnings for the first quarter. Their estimates range between a low of 44 cents per share and a high of 57 cents per share.
Quarterly revenue is forecasted to come in at $9.09 billion, which is a 0.3% increase from the comparable quarter of 2017.
Source: Yahoo Finance
Analysts’ revenue estimates range between a low of $8.94 billion and a high of $9.21 billion.
For full-year 2018, the company’s earnings are expected to grow 14.50%, which is below the average of 19.04% computed over the last four fiscal years.
In the chart below, the trend in Nike’s revenue, net income and EPS from fiscal 2014 to fiscal 2017 is illustrated. Revenue grew at an average annual rate of 7.33%. For next year, analysts forecast a 4.80% growth in Nike’s revenue, from $34.35 billion in fiscal 2017 to a forecasted figure of $36.01 billion for fiscal 2018.
Over the same period, Nike’s net margin has steadily grown to 12.34%.
GuruFocus gives Nike a profitability and growth rating of 8 out of 10.
Nike’s balance sheet is solid with $6.18 billion in cash on hand and securities, or $3.76 per share. Total debt of $3.8 billion leads to a total debt-equity ratio of 30.64% versus an industry average of 91.85%. The latter suggests Nike’s balance sheet is - on average - less leveraged than its peers.
The current ratio is 2.93 versus an industry average of 1.27.
GuruFocus gives Nike a financial strength rating of 8 out of 10.
Nike. is currently trading around $53.24 per share - nearly $7.3 below the 52-week high of $60.53 per share (the 52-week low is $49.01 per share) – with a market capitalization of $87.39 billion.
The company distributes an annual dividend of 72 cents through quarterly payments of 18 cents, for a dividend yield of 1.35% according to the current market value.
The forward price-earnings (P/E) ratio – as forecasted by analysts – is 22.37. When this ratio is combined with the forecasted fiscal 2018 EPS of $2.41, it yields a value of $53.91 per share.
Analysts forecast Nike will reach a price of $60.40 per share within 12 trading months. The recommendation rating is 2.3 out of 5, which encourages investors to buy the stock
Disclosure: I have no positions in Nike Inc.
