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Nike, Inc. (NYSE:NKE), together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessory products for men, women, and children worldwide. The company offers products in the categories of running, training, basketball, soccer, sport-inspired casual shoes, and kids? shoes.

It is scheduled to report its Q4 2012 results on June 28, 2012, after the bell.

Technical Overview


Key Metrics

  • Market Cap: 46.39B
  • 52-week trading range: 76.98 - 114.81
  • Trailing P/E: 21.11
  • Forward P/E: 17.48
  • Price/Sales: 1.98
  • Price/Book: 4.56
  • PEG Ratio: 1.58
  • Total Debt: 369.00M
  • Annual dividend yield: 1.40%
  • Return on Equity: 22.59%
  • Return on Assets: 12.99%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.20 EPS, beating analyst estimates of $1.17.

The consensus EPS is $1.37 based on 19 analysts' estimates, up from $1.24 a year ago. Revenue estimates are $6.52B, up from $5.77B a year ago. The median target price by analysts for the stock is $125.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 13, 2012, the company was upgraded from Sell to Hold at McAdams Wright Ragen.
  • On April 19, 2012, The Benchmark Company initiated Buy rating for the company.
  • On March 12, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On March 11, 2012, the company was downgraded from Hold to Sell at McAdams Wright Ragen.
  • On January 30, 2012, the company was upgraded from Hold to Buy at Argus.

Latest Developments

  • On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
  • On May 31, 2012, NIKE, Inc. announced its intention to divest of two of its wholly-owned affiliate brands - Cole Haan and Umbro - to sharpen its focus on driving growth in the NIKE, Jordan, Converse and Hurley brands.
  • On May 15, 2012, Nike, Inc. announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share on the Company`s outstanding Class A and Class B Common Stock payable on July 2, 2012, to shareholders of record at the close of business on June 4, 2012.
  • On March 22, 2012, Nike, Inc. announced that on a reported basis, the Company expect low double digit revenue growth for the fourth quarter of 2012 resulting in mid teens growth for fiscal 2012 and expects earnings per share (EPS) growth approaching the Company' s mid teens long term goal.
  • On February 7, 2012, Nike, Inc. announced that it has entered into a strategic partnership with DyeCoo Textile Systems B.V., a Netherlands-based company that has developed and built the first commercially available waterless textile dyeing machines.

Competitors

Nike Inc. operates in Textile - Apparel Footwear & Accessories industry. The company could be compared to Crocs, Inc. (NASDAQ:CROX), Deckers Outdoor Corp. (NYSE:DECK), Steven Madden, Ltd. (NASDAQ:SHOO), and Wolverine World Wide Inc. (NYSE:WWW). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)NKE Chart

NKE data by YCharts

Competitors' Latest Development

  • On June 13, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Deckers Outdoor Corporation.
  • On May 3, 2012, Steven Madden Ltd. announced that fiscal 2012, it expects net sales to increase 24%-26% from fiscal 2011, compared to previous guidance of a 21%-23% increase and diluted EPS is now expected to be in the range of $2.62-$2.72, compared to previous guidance of $2.60-$2.70.
  • On May 1, 2012, Collective Brands, Inc. and a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital announced that they have entered into a definitive agreement under which Collective Brands will be acquired for $21.75 per share in cash, or a total of approximately $2.0 billion, including the assumption of debt.
  • On April 26, 2012, Deckers Outdoor Corporation announced that for second quarter of 2012, it expects revenue to increase approximately 8% over fiscal 2011. The Company expects second quarter 2012 diluted loss per share of approximately $(0.60) compared to the diluted loss per share of $(0.19) reported in the second quarter of 2011.
  • On April 25, 2012, Crocs, Inc. announced that for the second quarter of 2012, it expects revenue to be in the range of $335 to $340 million and diluted earnings per share to be between $0.61 and $0.63.
  • On April 23, 2012, Wolverine World Wide, Inc. announced the formation of a joint venture with Tata International to market footwear and apparel in India. The new joint venture will initially be responsible for the wholesale distribution of Wolverine Worldwide's Merrell and Caterpillar Footwear brands.
  • On April 23, 2012, Wolverine World Wide, Inc. announced that it is raising its fiscal 2012 earnings per share guidance to a range of $2.70 to $2.80 and revising its fiscal 2012 revenue guidance to a range of $1.46 billion to $1.50 billion.
  • On April 20, 2012, Forus SA announced that it has reached the agreement with Wolverine World Wide, Inc. to cooperate under the RKF (Rockford), Hush Puppies, Cushe, Merrell and CAT brands, through the subsidiaries Forus Colombia SA and Lifestyle Brands of Colombia SAS.
  • On February 23, 2012, Deckers Outdoor Corporation and Romeo & Juliette, Inc. and Tom Romeo jointly announced that they have reached a settlement in Deckers Outdoor Corporation v.
  • On February 21, 2012, Steven Madden Ltd. announced that for fiscal 2012, it expects net sales to increase 21%-23% compared to fiscal 2011 and diluted EPS to be in the range of $2.60-$2.70.
  • On January 30, 2012, Wolverine World Wide, Inc. announced that for fiscal 2012, it expects to report revenue in the range of $1.485-$1.525 billion and fully diluted earnings per share in the range of $2.60-$2.70.
  • On January 10, 2012, Crocs, Inc. announced that for fiscal 2011, it expects annual revenue to surpass $1 billion for the first time when the Company reports results for the year ended December 31, 2011.
  • On December 30, 2011, Bakers Footwear Group announced that it had entered into a Trademark Sale and License Agreement for its Wild Pair trademark, and related trademarks, with Steven Madden, Ltd.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Nike