Nike (NKE) – Get Report shares soared after earnings, but that doesn’t mean not to buy the stock now. The company, large and economically sensitive, is somewhat of a growth play and has been treated by the market as such.
Before we analyze, let’s look at the earnings and the stock.
Nike reported earnings Tuesday after the closing bell and wiped the floor clean on analysts’ estimates. Here were the results:
- Revenue: $10.6B v. $9.13B (actual result: -1% year-over-year)
- North America Revenue: $4.225B vs. $3.43B (-1%)
- China Revenue: $1.78B vs. $1.87B (+8%)
- Operating Margin: 16.1% vs. 9.6% (14% last year)
- Adjusted EPS: 97 cents vs. 47 cents (+11%)
Digital sales rose 82% as consumers largely stayed at home. Management said foot traffic was weak and that the strength came less from generally strong consumer demand and more from e-commerce capabilities and product and brand strength. Costs nearly