Company Profile
NIKE, Inc., 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.
NIKE (NKE) is scheduled to report its fourth quarter earnings results on June 28, 2012, after the market close.
Technical Overview
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NIKE has a market cap of $46.54 billion and it is currently trading around $101.94 with a 52 week range of $75.91 to $114.43. The stock has risen 5.48% year to date. The following table provides the key financial ratios for NIKE:
| Key Ratio | Value |
| Current Ratio | 3.21 |
| PEG | 1.78 |
| P/E | 21.15 |
| Forward P/E | 17.54 |
| Profit Margin | 9.68% |
| Return On Assets (ROA) | 15.49% |
| Return On Equity (ROE) | 22.58% |
Recent News
- On June 5, 2012, The Coca-Cola Company (KO), Ford Motor Company (F), H.J. Heinz Company (HNZ), NIKE, Inc. and Procter & Gamble (PG) announced the formation of the Plant PET Technology Collaborative, a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
- On June 4, 2012, NIKE announced that company founder and Chairman Bob Hurley will assume the interim CEO role at Hurley International, LLC, replacing Michael Egeck who has decided to leave the company.
- On May 31, 2012, NIKE 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 14, 2012, NIKE 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 April 18, 2012, NIKE announced the 23 local nonprofits and schools that will receive a total of $250,000 through the Nike Employee Grant Fund of The Oregon Community Foundation and its Winter 2011/2012 program.
Here's a list of recent changes to analyst ratings:
- On June 14, 2012, McAdams Wright Ragen upgraded NIKE from Sell to Hold
- On June 9, 2012 Columbine Capital Services, Inc. downgraded NIKE from NEUTRAL to UNFAVORABLE.
- On May 7, 2012 Ned Davis Research downgraded NIKE from BUY to NEUTRAL.
- On April 27, 2012 EVA Dimensions, LLC upgraded NIKE from OVERWEIGHT to BUY.
- On April 21, 2012 Columbine Capital Services, Inc. upgraded NIKE from UNFAVORABLE to NEUTRAL.
- On April 20, 2012, Benchmark initiated NIKE with a BUY rating and set the price target as $128.
- On April 16, 2012 Ned Davis Research upgraded NIKE INC from NEUTRAL to BUY.
- On April 13, 2012, Janney Capital's Eric Tracy initiated coverage on NIKE with a BUY rating and set the price target as $127.
- On April 6, 2012 Ford Equity Research downgraded NIKE from FAVORABLE to NEUTRAL.
- On April 7, 2012 Columbine Capital Services, Inc. downgraded NIKE from NEUTRAL to UNFAVORABLE.
- On March 23, 2012 Ford Equity Research upgraded NIKE from NEUTRAL to FAVORABLE.
- On March 24, 2012 Columbine Capital Services, Inc. upgraded NIKE from UNFAVORABLE to NEUTRAL.
- On March 16, 2012, DA Davidson initiated coverage on NIKE with a BUY rating and set the price target as $129.
Analyst Guidance and Earnings History
The fourth quarter revenues are expected to be $6.52 billion when compared to $5.77 billion for the same quarter last year. Earnings per share for the fourth quarter are expected to be $1.37 a share, up from a $1.24 a share in the year-ago period.
The average price target from analyst for NIKE is $122.45 with average rating is OVERWEIGHT
Out of the last 4 quarters, NIKE has exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:
The following chart shows the annual summary of Sales and Net income for NIKE:
Competition
Nike , Deckers (DECK), Adidas (ADDYY.PK), Skechers (SKX) and Crocs (CROX) are considered as major competitors for NIKE and the table below provides the key metrics for these companies:
| Name | Nike Inc | Deckers Outdoor Corp. | Adidas Agundefined | Crocs Inc | Skechers U.S.A. Inc |
| Symbol | NKE | DECK | ADDYY.PK | CROX | SKX |
| Price | $101.66 | $47.30 | $37.34 | $16.19 | $21.28 |
| 52 Week Price | 22.00% | -41.34% | 2.43% | -34.29% | 45.66% |
| Market Capitalization | $46.5B | 1.82B | 15.6B | 1.4B | $1.1B |
| Earnings per Share | 4.8 | 4.79 | 2.25 | 1.32 | -1.7 |
| Total Revenue | $23.4B | $1.42B | $17.48B | $1.05B | $1.5B |
| Employees (Full-Time) | 38000 | 1900 | 39903 | 4157 | 5636 |
Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.
Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.
Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in NKE over the next 72 hours.
