Nike (NKE) Stock Jumping After Topping Earnings Estimates

NEW YORK (TheStreet) -- Shares of Nike Inc  (NKE) were jumping, up 3.35% to $108.75 in pre-market trading Friday, following the release of its better than expected fiscal fourth quarter earnings results after the closing bell late Thursday.

For the quarter, the athletic shoe and apparel manufacturer earned 98 cents per share on revenue of $7.78 billion.

Analysts on average were expecting the company to post earnings of 83 cents per share on revenue of $7.69 billion, according to Thomson Reuters data.

In the same period of last year, the company earned 78 cents per share on sales of $7.42 billion.

The company also reported that as of the end of the quarter, worldwide futures orders scheduled for delivery through November 2015 were 2% higher compared to a year ago at $13.5 billion.

On a currency neutral basis, Nike said the figure was 13% higher.

For the full fiscal year, the company posted a 10% rise in revenues to $30.6 billion.

"Fiscal 2015 was an outstanding year for NIKE. Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale," said CEO Mark Parker in a statement.

Beaverton, Ore.-based Nike is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services.

Nike sells its products to retail accounts, through Nike owned retail stores and internet websites.

It focuses on product offerings in eight categories including running, basketball, soccer, men's training, women's training, action sports, sportswear, and golf.

Insight from TheStreet's Research Team:

Brian Sozzi commented on Nike in a recent post on RealMoney.com. Here is a snippet of what Sozzi had to say about the stock:

Nike  (NKE) knocked it out of the park to cap off its fiscal year, but the numbers should be looked at from a couple of perspectives. The first is from a broader macro standpoint, the second from a relative stock view.

First, some general numbers. Nike's running business was not the top performer for the company. Weird? Not really; the company is feeling the heat from several competitors, including Growth Seeker portfolio holding Under Armour  (UA). Earnings came in at $0.98 a share compared to the $0.83 a share estimate, driven by strong sales in the basketball category (+21%), sportswear (+20%) and women's training (+16%).

On the other hand, sales in the running category, which also includes sales of related apparel, only rose 9%. The performance suggested that Nike continued to have some sales difficulties in its core, running sneaker business.

- Brian Sozzi, 'Nike's Earnings Tell Us 3 Important Things' originally published 6/26/2015 on RealMoney.com.

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Separately, TheStreet Ratings team rates NIKE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NIKE INC (NKE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

You can view the full analysis from the report here: NKE Ratings Report

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