Nike (NKE) Up While Accenture (ACN) and BlackBerry (BB) Down After Earnings

Nike (NKE) Up While Accenture (ACN) and BlackBerry (BB) Down After Earnings


Nike (NKE) shares climbed 7.1% higher after the company reported strong results for the fiscal second-quarter. In particular, the stock benefited from robust demand in North America, with new products at wider margins. Online sales also supported results, with growth of more than 40% (+ 30% in the domestic market). Total quarterly revenues amounted to $9.4 billion, for net earnings of $847 million and earnings per share of 52 cents, compared with revenues of $8.6 billion and 46 cents in the year-ago quarter. The consensus, on average, stood at 46 cents earnings per share and $9.2 billion in revenue.

“This quarter you could see momentum swing in the conversation around retail,” CEO Mark Parker said on a conference call with analysts. “We saw it over the Thanksgiving shopping week, fueling more than 30 percent increase in our digital business in North America for the quarter.”

Accenture (ACN) lost 5%, despite quarterly earnings above expectations, supported by digital and cloud business. The consulting group announced net earnings for the quarter of $1.3 billion and $1.96 per security, compared with $1.12 billion and $1.79 per share a year earlier. The consensus was $1.86 EPS. Revenues improved by 7% to $10.6 billion, compared with $10.5 billion in consensus. Over the quarter ending in March, the Dublin-based company expects revenues ranging from $10.1 to $10.4 billion, against $10.3 billion of consensus. Finally, the annual EPS is anticipated between $7.01 and $7.25.

BlackBerry (BB) failed to impress investors despite earnings and quarterly profits exceeded expectations thanks to the success of its bet on autonomous technologies. Net income for the third quarter that ended November was $59 million and -1 cent per share on a diluted basis. The adjusted EPS was 5 cents against 2 cents consensus. Revenues totaled $226 million, compared to $210 million a year earlier and $213 million in consensus. For the 2019 financial year, the Canadian company is counting on a positive adjusted EPS.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.