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Will These Numbers from Nike Be Good Enough for You?

Monday - 3/18/2013, 4:25pm  ET

Nike is expected to report Q3 earnings on March 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Nike's revenues will grow 6.3% and EPS will expand 11.7%.

The average estimate for revenue is $6.22 billion. On the bottom line, the average EPS estimate is $0.67.

Revenue details
Last quarter, Nike recorded revenue of $5.96 billion. GAAP reported sales were 7.4% higher than the prior-year quarter's $5.55 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.57. GAAP EPS of $0.42 for Q2 were 16% lower than the prior-year quarter's $0.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.5%, 30 basis points worse than the prior-year quarter. Operating margin was 11.7%, 10 basis points better than the prior-year quarter. Net margin was 6.4%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $25.37 billion. The average EPS estimate is $2.64.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,327 members out of 2,451 rating the stock outperform, and 124 members rating it underperform. Among 692 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 673 give Nike a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nike is outperform, with an average price target of $52.03.

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This article was originally published as Will These Numbers from Nike Be Good Enough for You?on Fool.com

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