Nike After Earnings: Think Twice Before You Just Do It Ben Kramer-Miller More Articles June 27, 2014 6/6.023 6/6.023 On Thursday after the market closed the world’s largest sports apparel corporation ‘ Nike (NYSE: NKE) ‘ posted earnings in the fourth quarter. The market was pleased with the results as shares traded in the after-hour market by more than 3 per cent and they almost hit their all-time high of $80.26/share. This excitement for investors was largely a result of strong sales figures from the company. The company posted $7.4 billion in revenues which beat $60 million in analyst expectations. This figure is 10.4 per cent higher than last year’s company revenues. Earnings, however, were another matter. Over the fourth quarter of last year, sales came in at $698 million vs. $690 million. Compared to the company’s revenue growth rate, this 1 percent increase in earnings growth pales which means that the company is having trouble keeping its margins. Investors should bear in mind that the contrast on a constant currency basis is not that bad: the strong dollar over the past year makes the company’s foreign sales look weaker and otherwise earnings would have been $30 million higher or $728 million, almost 6 percent higher than last year’s fourth quarter. Yet investors do need to bear in mind that Adidas paid a marginally lower tax rate “22.9 percent vs. 23.5 percent last year—and so the contrast is probably slightly worse than this. While these results are generally optimistic apart from the compression of margins, one has to wonder if Nike shares are worth the 26-fold earnings premium valuation offered by the market. Given the firm’s strong brand image its potential for international growth and its history of good management, one can certainly argue that the stock is worth more than a similar company lacking such qualities. Therefore, if one believes that the growth rate of the company’s sales will trickle down to the bottom line in the future, then 26-time earnings do not seem so high, particularly in a low interest rate environment. But this last sentence is packed with ‘ if in this market environment I don’t think it’s worth betting on. As far as the company’s margins are concerned, Adidas is t the only company facing margin erosion as labor costs increase in developing countries and commodity prices continue to rise. These factors will continue to put pressure on Nike’s profits and this would mean that growth in the company’s sales might not turn into growth in earnings. Earnings growth would be marginal in this case and the stock would have to decline in value on a price to earnings basis. Are stock buybacks higher-driving the market? People Have More Confidence in Banks Than CongressMatthew Trzcinski More Articles February 19, 2020 Many people prefer not to discuss religious topicsPart of his public image of Christian faith for the whole of his career. Several followers from the outside believed Bieber was a Christian whose religion was straightforward. 8/8.401 8/8.401 Figure 1 Justin Bieber performing Chelsea Lauren / WireImage
How the religion of Justin Bieber has changed
He believes that Jesus is not an elitist religious. He claims it was Jesus in the ashes. He also praises God to find me in my dirt and have me taken out. Though crediting his faith for a change in his behaviour, he does not believe that through his own acts he will earn God’s love. People in Protestant Christianity are saved by faith rather than by any good deeds. Bieber’s definition of reverence for God is in line with conventional Protestant doctrines. Discussing his conception of the love of God, Bieber said that God has loved me for who I am before I did anything to win or deserve it. It’s a free gift to believe that Jesus gave him your life and what he did is the reward. Forgiveness is the thing we look at and we go you know I’m going to praise you God because you gave me something so sweet. “