We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Nike (NKE) Stock Plunges on Disappointing Q4 Earnings
Nike Inc. (NKE - Free Report) just reported is fiscal 2016 fourth quarter results, posting earnings of $0.49 per share on revenues of $8.24 billion.
Q4 diluted earnings per share came in at $0.49, beating the Zacks Consensus Estimate of $0.48 per share but staying flat in comparison to the prior year. Q4 revenues came in at $8.24 billion, just missing our consensus estimate of $8.261 billion and increasing 6% year-over-year (up 9% on a currency-neutral basis).
Revenues for the Nike brand were $7.7 billion, up 8% on a currency-neutral basis thanks to double-digit growth in Western Europe, Greater China, Emerging Markets, and Japan. The company saw strong growth in Sportswear, Global Football, and the Jordan brand.
Net income decreased 2% to $846 million as revenue growth was more than offset by lower gross margin, higher selling, administrative expenses, and a higher tax rate.
For fiscal 2016, diluted EPS rose 17% to $2.16 per share, while revenues increased 6% to $32.4 billion (up12% on a currency-neutral basis).
Check out Zacks’ own Dave Bartosiak discussing the athletic giant’s Q4 results:
NKE stock was down 7.16% as of 4:55 PM EST.
Currently, Nike sits at a Zacks Rank #4 (Sell), but may see a change following the release of its latest earnings results.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>