Earnings exceed expectations
Nike’s (NKE) EPS of $0.68 in fiscal 2019’s third quarter,[1.ended February 28] excluding one-time items, beat Wall Street’s average estimate of $0.65, marking the 27th straight quarter of doing so. Nike’s revenue grew 7.0%, in line with analysts’ expectation.
Nike’s adjusted EPS were flat YoY (year-over-year). On a reported basis, its EPS improved YoY to $0.68 from -$0.57, driven by higher revenue, a stronger gross margin, and lower tax, partially offset by growth investment expenses. Its bottom line also benefited from a lower average share count as a result of share repurchases. Nike expects high-single-digit revenue growth and further gross margin expansion in fiscal 2020.