Friday, March 18, 2011

Nike (NKE) Shares Plunge on Earnings Miss

Shares of Nike (NYSE:NKE) fell hard in after hours trading as the company missed analysts' estimates on higher costs of cotton and oil.

For its fiscal third quarter, net income increased 5.2 percent to $523 million, or $1.08 a share. That was up from the $497 million, or 1.01 a share generated last year in the same quarter, but down from the $1.12 analysts were looking for.

Revenue climbed to $5.08 billion for the quarter, an increase of 7.3 percent.

Minus currency exchange rates, future orders enjoyed an increase of 9 percent, level with what analysts were expecting.

The major negative was the gross margin numbers, which dropped to 45.8 percent, a decline of 1.1 percentage points.

Nike closed Thursday at $85.41, gaining $0.59, or 0.70 percent, In after hours trading, it fell to $79.98, down $5.36, or 6.28 percent.

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