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Shares of Nike (NYSE:NKE) reached triple digits in after-hours trading after strong revenue and earnings per share were announced. (Earnings Call) The company beat analysts' targets on both of these key items and continues to look like a strong performer heading into 2013.

Analysts on Yahoo Finance had been estimating Nike would post earnings per share of $1.00 for the second quarter. Nike blew these people away with $1.14 reported. Revenue was expected to hit $5.99 billion. Nike reported revenue of $6.00, slightly ahead of analysts' predictions.

Nike lists three key drivers that contributed to the success for the quarter and the fiscal year:

· Ability to connect and innovate with consumers

· Power of our portfolio

· Ability to leverage both those strategic advantages to deliver sustainable, profitable growth

Here are several reasons why you should get behind shares of Nike and go long:

· New innovations - Nike reported that the Nike+ community is now 10 million members strong. Nike continues to create new products centered around its digital technology. In the quarter, digital commerce growth was up 39%. Nike's FlyKnit, lightweight shoes, continue to be a hot topic and huge opportunity for the company.

· China - China was one of the weak spots of the conference call as the region saw declines in revenue. However, Nike is strong in the country and continues to be the premium brands. The NBA being played in the third and fourth quarters should get these numbers back in line.

· Shareholder friendly - Nike completed a $5 billion share repurchase in the first six months of the fiscal year. The company now has laid out a new $8 billion share repurchase over the next four years. Nike also recently raised its dividend 17% to a quarterly payout of $0.42.

· Balance sheet - Nike ended the quarter with $3.5 billion in cash and only $400 million in debt. Nike continues to earn huge amounts of cash each year. Recent divestitures of the Cole Haan and Umbro brand have padded this cash amount. Look for Nike to make a purchase in the next six months to strengthen one of its key focus areas of running, football, or digital.

· NFL contract - Sales of NFL merchandise were strong as expected. Nike only began its new NFL deal in April and will continue to see sales increase over the next few years. Advertising has been strong in this category as Nike expands from jerseys into training gear based on NFL teams.

· Emerging markets - Despite weakened sales in China, other parts of the world are seeing huge revenue gains for Nike. The emerging markets segment hit $1 billion for the first time in a quarter and continues to grow at double digit pace. In the second quarter, emerging market revenue grew 18%, marking the thirteenth consecutive quarter of double digit growth.

Shares traded at $103.70 at the end of the extended trading session. If shares close above $100 Friday, which is highly likely based on the bullish case, it would mark the first time in triple digits since September. I have recommended buying shares of Nike twice this year centered around an after hours earning miss and the 2012 Summer Olympics. My price target at the time was $125, and I believe that is the amount we will see by the end of 2013.

Analysts expect Nike to post earnings per share of $5.98 for fiscal 2014. My $125 price target signifies a price to earnings multiple of 20. I believe Nike will release bullish guidance for 2014 at the fourth quarter earnings call. In June, shares traded at $85 when I recommended them. This time around, shares may not see double digits for quite some time.

Source: Nike Stock: Just Do It, Time To Go Long