Shares of Nike (NKE) climbed 3% in after-hours trading when the clothing and apparel maker reported better than expected quarterly profit and earnings.
Nike reported 3% higher quarterly adjusted earnings per share of 78 cents, beating forecasts calling for a profit of 75 cents. Revenue for the quarter rose 11% to $7.4 billion, topping estimates for $7.34 billion.
The company said strong profitability in its products and a reduced number of shares outstanding due to buybacks allowed it to overcome the negative hit of foreign exchange rates, greater investments and a higher tax rate.
Shares of Nike rose 39 cents, or 0.5%, to close at $76.86 during regular trading.
Analysts remain bullish on the company’s stock, with the average analyst rating it an “outperform,” says S&P Capital IQ. Shares of Nike have been lagging this year, falling 2.3% versus the roughly 7% gain by the Standard & Poor’s 500. Investors have feared that growing growth in emerging parts of the world would crimp Nike’s revenue growth.
SOURCE: Matt Krantz
USA Today Money