Nike Earnings Preview

Nike’s stock price has been climbing ahead of next week’s earnings report. Nike is expected to report their fiscal fourth quarter 2010 results after the market closes on Wednesday, June 23.


There have been rumors in recent weeks that Nike [[NKE]] has been experiencing weak order demand. However, World Cup fever seems to have lifted the shares recently.


Last quarter, Nike reported earnings results that were $.12 above Wall Street’s consensus estimates. NKE shares climbed 5.3% following the solid earnings beat.


The current Wall Street consensus estimates are for revenues of $5.13 billion and EPS of $1.05. This would imply a 9% increase in revenues over last year’s $4.71 billion. And a 6% growth in earnings over the $.99 per share earned in the previous year.


In 2010, Nike’s shares have gained nearly 13% and have easily outperformed the S&P 500’s flat performance. Last year, Nike jumped over 29% as the stock outperformed the 24% gain in the S&P 500.


Nike’s stock is currently trading at 17x consensus 2011 EPS estimates. Speculation over weak demand is likely just that. Nike is likely to at least report an inline quarter.


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