DA Davidson Raises Estimates on Nike (NKE) Ahead of Q4 Earnings, Reiterates $95 Price Target
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Price: $40.73 -1.21%
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
26 Buy, 28 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is maintaining its Buy rating and $95 price target on shares of Nike (NYSE: NKE) ahead of its earnings report which is scheduled for June 27 following the close of the market at 5:00 pm.
The firm is raising its Q4 EPS estimate from $1.09 to $1.17 as market checks indicate higher sales and margins. To go inline with its new estimate, it is also raising its FY11 estimate from $4.25 to $4.33 and its FY12 from $4.65 to $4.85. The company continue to experience strong retail trends in the running footwear, basketball footwear, and apparel business.
Year-over-year the firm forecasts that revenue should grow by 8.6 percent to $5,512 million for the quarter with Emerging Markets and Greater China experiencing a 20 percent growth while North America is only estimated to see low double-digit growth.
Gross margin is only expected to be 44.8 percent, a 250 bps decline year-over-year, due to higher input and freight costs. DA Davidson notes that, "Margin pressures will likely remain a key focus going forward, but we think price increases, sourcing initiatives and moderating cost pressure will help mitigate these headwinds later in FY12."
Shares of NKE are currently trading down 0.45 percent or $0.38 to $84.13.
For more ratings news on Nike click here and for the rating history of Nike click here.
Shares of Nike closed at $84.51 yesterday.
The firm is raising its Q4 EPS estimate from $1.09 to $1.17 as market checks indicate higher sales and margins. To go inline with its new estimate, it is also raising its FY11 estimate from $4.25 to $4.33 and its FY12 from $4.65 to $4.85. The company continue to experience strong retail trends in the running footwear, basketball footwear, and apparel business.
Year-over-year the firm forecasts that revenue should grow by 8.6 percent to $5,512 million for the quarter with Emerging Markets and Greater China experiencing a 20 percent growth while North America is only estimated to see low double-digit growth.
Gross margin is only expected to be 44.8 percent, a 250 bps decline year-over-year, due to higher input and freight costs. DA Davidson notes that, "Margin pressures will likely remain a key focus going forward, but we think price increases, sourcing initiatives and moderating cost pressure will help mitigate these headwinds later in FY12."
Shares of NKE are currently trading down 0.45 percent or $0.38 to $84.13.
For more ratings news on Nike click here and for the rating history of Nike click here.
Shares of Nike closed at $84.51 yesterday.
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