Nike (NKE) Fiscal 3Q17 Results: Beats on Earnings, Slightly Misses on Revenue

Executive Summary

• Nike reported fiscal 3Q17 adjusted EPS of $0.68, ahead of the $0.53 consensus estimate and up 23.6% year over year, driven by SG&A expense leverage as well as by higher other income, a lower tax rate and a lower share count.
• Revenues of $8.4 billion were up 5.0% year over year, or up 7.0% on a currency-neutral basis. Revenues for the Nike brand were $7.9 billion, up 7.0% in currency-neutral terms.
• Revenue growth was driven by double-digit growth in the Western Europe, Greater China and Emerging Markets regions as well as the sportswear and Jordan brand categories.