Can Nike Post Double Digit EPS Growth? Crowd & Experts Differ

Nike Inc (NYSE: NKE) is scheduled to announce its fourth quarter financial results on Thursday afternoon, after the market closes.

According to Estimize, the company is expected to deliver a year-over-year earnings growth rate in the 7.5 percent to 13 percent range.

In the fourth quarter last year, the famed apparel company reported earnings of $0.78 per share on revenue of $7.425 billion. For the current quarter, the Street is modeling consensus earnings of $0.84 per share on revenue of $7.684 billion, while the crowd is projecting consensus earnings of $0.88 per share on revenue of $7.787 billion.

Furthermore, as it can be seen in the chart above, Nike has a history of surpassing estimates.

Set For A Beat?

In a report published last Wednesday, DA Davidson analyst Andrew Burns previewed Nike’s fourth quarter earnings, reiterating a Neutral rating and $110 price target on the stock.

Related Link: Is Nike Set For An Earnings Beat?

The firm expects fourth-quarter revenues of $7.684 billion and earnings of $0.85 per share. The experts are also projecting gross margins of 45.9 percent, up 31bps year over year, and operating margins of 13.2 percent, up 60bps year over year.

Regarding geographic demand, Burns added, "We are modeling Futures orders to be led by 19% growth in Greater China, 17% growth in Central & Eastern Europe, 12% in North America and Japan, 9% growth in Western Europe, and 3% in the Emerging Markets."