Earnings Outlook For Nike

Nike NKE announces its next round of earnings this Thursday, June 24. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Nike EPS is expected to be around $0.51, according to sell-side analysts. Sales will likely be near $11.01 billion. Nike EPS in the same period a year ago totaled $0.51. Sales were $6.31 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 200.0%. Revenue would be up 74.4% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Nike were trading at $132.48 as of June 22. Over the last 52-week period, shares are up 30.81%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Nike is scheduled to hold the call at 17:00:00 ET and can be accessed here.