REUTERS/Lucy Nicholson
Nike shares surged 9% to a record high on Friday following the enterprise reported a solid very first quarter and big beats on the leading and bottom lines.
The stock is up 29% year-to-date.
On Thursday evening, the apparel giant reported adjusted earnings per share of $1.34, up 23%, and revenues of $eight.four billion.
Revenues from North America rose eight% — 9% excluding currency fluctuations — and jumped 30% in China.
Analysts expected $1.19 in adjusted earnings per share and $8.22 billion in revenues, according to Bloomberg. They had been seeking for ten% income growth in North America.
Compared with a year ago, future orders — placed by retailers worldwide for delivery among September and January — were 9% higher at the end of the quarter. Excluding the currency impact, they rose 17%, beating the forecast for ten.3% development.
At the annual shareholders meeting final week, the enterprise announced that revenues grew ten% to $30.6 billion in the most recent fiscal year.
Deutsche Bank analysts raised their cost target on the stock to $140 from $125. In a note to clients on Friday, they wrote: “Even though mgmt. kept FY16 program largely the same, the broad-based strength Nike saw throughout the quarter indicates that brand momentum continues. Regardless of concerns over a weaker macro, the China business enterprise saw 30% income growth at higher operating margins.”
Andrew Burns at D.A. Davidson wrote in a note that probabilities the organization would revise its earnings guidance upward were high. “Capitalizing on a powerful athletic cycle, Nike’s leadership position is unchallenged,” he wrote.
Here’s a chart showing the lifetime of the stock:
Our editors found this article on this site using Google and regenerated it for our readers.
