NIKE Inc. (NYSE:NKE), falling profits is reflected in its falling stock value. Company’s earnings fell by 6% from the prior year and gross margins got squeezed by 1.5 percentage points. A 12% pickup in revenue wasn’t enough to offset the higher operating costs.
Nike loves when its athletes “just do” it outstandingly. Binary NKE hit the bottom of the year only a few days ago and marked a price of around $85 per share. After that, Nike benefited from an increased stock value before it slightly rebounding to the newest lower price of $93.08 per share.
The degree of losing ground binary Nike is reflected by the fact that currently, NKE is way too far below its ranges of MA – 50 ($100.77) and MA – 200 ($ 100.85), as it could be seen from the graph. All this is happening just days before the Olympic Games of London, when sport giant like Nike Inc. are expected to be in their best time of the year.
During the Olympic Games in London fans are expected to purchase Nike shorts, jerseys of their favorite teams and athletes. Thus, generating in revenues and eventually profits for the organization. Therefore, at a first glance the weak position of binary NKE is surprising. The main reason for falling Nike shares is the latest weak financial report of the company.
On June 28, 2012, the company announced its fiscal Q 4 – 2012. A synopsis of the quarter is as follows:
- Fourth quarter revenues up 12 percent to $6.5 billion, up 14 percent excluding currency changes.
- Fourth quarter diluted earnings per share down 6 percent to $1.17.
- Fiscal 2012 revenues of $24.1 billion, up 16 percent, up 14 percent excluding currency changes.
- Fiscal year diluted earnings per share up 8 percent to $4.73.
- NIKE Brand futures orders up 7 percent, up 12 percent excluding currency changes.
- Inventories as of May 31, 2012 were up 23 percent versus the prior year.
Binary option traders are currently facing a binary NKE with some downwards indications. NKE price fell to $93.08 per share, while it was over $95 only a few days ago. Most binary analysts expect a continuation of the presently decreasing pattern. On the other hand, some binary investors foresee a corrective move of Nike stock.
Affiliated Brand: Cole Haan, Convers, Hurley, Jordan Brand, Nike Golf, Umbro
Co-founder Bill Bowerman
CEO – Mike Parker
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.