NIKE, Inc. (NYSE: NKE) stock was higher in this evening's after-hours trading session after the athletic apparel, footwear, and accessories company reported second-quarter 2017 financial results. Highlights of the NIKE report included earnings per share of $0.50, beating the Wall Street analyst consensus by $0.05, and revenues of $8.2 billion, beating the analyst consensus by $110 million. The EPS figure represents year-over-year growth of 11 percent. The revenue number represents year-over-year growth of 8 percent.
NIKE Chief Executive Officer Mark Parker and management have historically discussed their operating results with shareholders and analysts in a conference call scheduled for 5 p.m.
ET the day earnings releases are made. NIKE conference calls may be accessed from the company's investor relations website. Parker, who is 60 years old, earned $9.94 million in salary in fiscal 2016, along with exercising $53.65 million worth of options on NKE stock.
"With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond,” CEO Parker stated in a release by the company.
NKE stock up over 30,000 percent since 1980 initial public offering
Shares in NIKE were first offered to the public in 1980, nine years after the founding of the company.
Since then, NKE stock has returned close to 31,000 percent, compared with a gain of just over 1,400 percent by the general market, as measured by the Dow Jones Industrial Average. NKE shares currently pay a $0.72 dividend, which yields close to 1.4 percent, annually. Over the past 12 months, NKE stock is down by over 20 percent, compared with a gain near 16 percent for the Dow.
Going into today's report, the $84 billion market capitalization firm reported a cash position of $4.79 billion and debt totaling $2.19 billion. NIKE reported a debt-to-equity ratio of 17.99 percent. Further, the firm reports a return on equity of 30.57 percent, an operating margin of 13.05 percent, and a profit margin of 11.60 percent.
The current forward-looking price-to-2018-earnings ratio for NIKE is reported as 19.22.
Single-digit 2017 EPS growth forecast to transform to double-digit growth in 2018
The current analyst consensus for full-year 2017 NIKE revenues is $34.74 billion, which, if met, would represent year-over-year growth of 7.3 percent. In 2018, analysts are forecasting NIKE revenues to grow another 8.2 percent to $37.60 billion. 2017 revenue estimates range from $34.29 to $35.52 billion. 2018 views range from $36.43 to $38.96 billion.
In 2017, analysts see NKE EPS growing by 8.8 percent to $2.35. In 2018, NKE EPS is forecast to grow, by 12.8 percent, to $2.65. Over the past 90 days, 2017 forecasts have been revised downward, by 2.1 percent, from $2.40 to $2.35. Over the same period, forecasts for 2018 EPS have been reduced, by 3.9 percent, from $2.76 to $2.65.
