Nike spikes on earnings after getting a big boost from digital (NKE)
- Nike shares rose 8% in after-hours trading Thursday after beating analysts' expectations on both the top and bottom line.
- The sneaker giant said it got a big boost from its digital business.
- Watch Nike trade live.
Nike shares jumped 8% in after-hours trading Thursday after the company reported second-quarter results that topped Wall Streets estimates on both the top and bottom lines.
Here's what Nike reported, compared to what analysts surveyed by Bloomberg were expecting:
- Earnings per share: $0.52 vs. $0.46 expected
- Revenue: $9.37 billion vs. $9.17 billion expected
- Gross margin: 43.8% vs. 43.5% expected
"Nike's ambitious digital transformation is driving strong results and momentum in North America and in our international geographies,” Mark Parker, Nike's chief executive officer, said in its earnings release. The report showed revenue for the Nike brand jumped 14% on a currency-neutral basis, driven by strong growth in digital.
Ahead of the earnings, Morgan Stanley analyst Lauren Cassel said she expected the results would "help to calm investor fears of a China and/or broader international slowdown," adding that they would be a "positive catalyst for the stock."
Cassel has an "overweight" rating and $103 price target — 54% above where shares were trading Thursday.
Nike was up 7% this year through Thursday.
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