Nike Earnings: Shares Soar as Report Beats Estimates

NIKE Earnings ReportNike, Inc. (NYSE/NIKE) shares soared in after-hours trading following its better-than-expected earnings report.

After the closing bell on Thursday June 25th, Nike reported its earnings for the fourth quarter of fiscal 2015 ended May 31, 2015. (Source: Nike, June 25, 2015.)

Quarterly revenue came in at $7.78 billion, beating analysts’ expectation of $7.69 billion. Earnings turned out to be $0.98 per share, significantly better than the $0.83 per share expected by analysts.

Growth was solid for the entire fiscal year as well. In fiscal 2015, revenue grew 10% to $30.6 billion. Net income for the year increased 22% to $3.3 billion. Earning per share for the year surged 25% to $3.70.

Shares of Nike jumped up as much as three percent in after-hours trading on Thursday. In the past 12 months, the company’s stock price has increased more than 40%.

Nike’s financial results have been negatively impacted by the strong U.S. dollar. The strong results overseas were tamed down after converting to the mighty greenback. Excluding currency changes, fourth-quarter revenue was up 13%, with fiscal 2015 revenue up 14%.

For the quarter, gross margin expanded by 60 basis points to 46.2%. This was mainly due to higher average selling prices and growth in high-margin direct-to-consumer business.

“Fiscal 2015 was an outstanding year for Nike,” said the company’s President and CEO Mark Parker. “Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for Nike.”

Shareholders have a lot to look forward to in upcoming quarters. Futures orders, a leading indicator of the company’s revenues, reported double-digit growth in every major market, excluding currency changes. These futures orders will likely translate to strong revenue growth in the months to come.