Q4 Preview: The Perfect Nike (NKE) Trifecta: Olympics, NFL License, Euro Cup

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Nike, Inc. (NYSE: NKE) shares are lower in late trading Thursday heading into its fourth-quarter 2012 report, expected out after the market closes. To go to the webcast for Nike, click here. The event will be taking place at about 5:00pm EDT on June 28th.

Currently, the market is looking for Nike to report EPS growth of 11.3 percent to $1.38 on sales growth of 13.2 percent to $6.53 billion. Last quarter, Nike reported EPS of $1.20 and revs of $5.8 billion.

The quarter will be the last one before Nike includes the London Olympics in its results. Investors are likely to keep an eye on future orders following the event to see if Nike will be able to keep momentum going.

Most recently, peer Foot Locker (NYSE: FL) reported results for its first-quarter, producing an earnings beat of 12.2 percent on as sales exceeded expectations by 2 percent.

According to Streetinsider's Ratings Insider, 12 analysts have a Buy on Nike, five are at Hold, and zero have a sell-equivalent call. The high price target is $130 and low is $104.

Analyst Comments

• Benchmark sees EPS of $1.36. The firm is concerned with order growth in China, foreign exchange headwinds, European banking and debt issues, and footwear trends in the U.S.
  
  Near-term catalysts include the Olympics, Euro Cup, and NFL license. Despite recent pressure, Benchmark believes any dip in shares is a buying opportunity.
  
  Looking ahead, the NFL license will begin to come into play, as well the 2014 World Cup and 2016 Olympics in Rio. Benchmark is also bullish on the Nike+ series.
  
  
• D.A. Davidson (DAD) is looking for sales of $6.46 billion and EPS of $1.36. In terms of future orders, DAD is modeling 13 percent growth in constant currency with low-to-mid-teens EPS growth guidance for fiscal 2013.
  
  The firm notes how top-line deceleration is inevitable, heightened by economic risks, currency translation, and difficult comps. Amid the headwinds, DAD said it expects "Nike’s market leadership position and earnings growth trajectory will continue into FY13 behind running and basketball category strength, new product launches (Flyknit and Nike+ Basketball/Running), the NFL license and price-driven gross margin expansion."

Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Nike's past performance at Streetinsider's Nike's Income Statement.

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