Nike's Profit Up

Nike (NYSE: NKE) saw its profit rise in the most recent quarter, coming up above estimates. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
Wall Street watched as Nike topped expectations with its latest EPS and revenue figures. The company reported EPS of $1.36/share versus the $1.21/share estimate and revenues of $6.08 billion versus the $5.75 billion estimate. EPS rose 1% while revenue climbed 17.5% from the same period last year.
Last quarter marked the third in a row of rising net income. Nike's revenue has grown during each of the past four quarters on a year-over-year basis.

Official Comment:
"We're off to a strong start in fiscal year 2012. We have a powerful and diverse portfolio of brands and businesses, and we're focused on leveraging them to drive growth and create value for our shareholders," said Mark Parker, President and CEO, NIKE, Inc. "It pays to be prudent in times like these. It's also essential that we remain on the offense, creating opportunities. We do that by connecting with consumers, designing innovative products and delivering amazing experiences. That's how we continue to lead this company and the industry into the future."

Industry:
Nike is in the retail-apparel and shoes industry. That industry is currently enjoying price/earnings growth of 0.9%. The company's EPS trumps the industry average by 35.7%.

What to Do Next:
Now you can make a better-informed decision about whether to buy, sell or hold Nike shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.

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