Nike, Inc. ($NKE) Earnings (Q3 FY22)

 Nike, Inc. ($NKE) Earnings and Opinion:


Nike, Inc. ($NKE) is a company in the Consumer Cyclical sector and Footwear & Accessories industry. The company sells athletic footwear, apparel, equipment, and accessories worldwide. Nike was founded in 1964 and is currently headquartered in Beaverton, Oregon. The company was first traded on the stock market in December of 1980. 

Nike, Inc. EPS and Revenue (Q3 FY22):

  • EPS of $0.87 beating expectations of $0.73
  • Revenue of $10.9B beating expectations of $10.6B
  • Revenue was up 5% (YOY)
Nike Inc. Q3 Income Statement Review:
  • Gross Margin increased 100bps to 46.6%
  • Net Income was $1.4B which was down 4% (YOY)
Nike, Inc. Shareholder Returns:
  • Dividends of $484M which is up 12% (YOY)
  • Repurchased $1.2B shares this quarter
Opinion:
Nike, Inc. is an industry leading giant. It has has success throughout its life as a company. With innovative designs and styles continuing to come out from the company, it's no wonder why this company continues on the track of success. Nike was due for a bad quarter, after a shaky year or so with supply chain concerns and pandemic woes. However, it proved estimators wrong. The stock is currently moving higher after hours due to the fact that it beat both revenue and EPS estimates. Revenue was up a slight 5% (YOY), but I can see this company start reaching pre-pandemic levels with covid starting to subside. Net Income was down a slight 4%, but that shouldn't phase investors too much because demand of shoes (especially in North America) are super high right now. This is going to allow Nike to increase revenues and get back on track of increasing that Net Income. I also really like how the dividend payout is continually increasing, this shows the strength of the company. Nike did suffer its worst quarterly drop in a while, so it could be a screaming buy right now, especially after the earnings just reported. Personally, I do not hold a position in this company, but have been extremely close to pulling the trigger a couple of times. I really like the opportunity that is presented both in the short-term as well as the long-term. I think this is one of the top buys out of all stocks in the Consumer Cyclical sector right now. 


*Information from Yahoo Finance and Nike
*Estimates attained from Zacks

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