Another Solid Quarter For Nike

Nike (NKE) came through with another great quarter this past week. The country's largest athletic shoe maker has been churning out good results year after year for the past decade. Nike dominates the market that it participates in and has been able to successfully sell its products both domestically and abroad. Let's take a closer look at Nike's results. Here are the highlights.

• Nike’s revenue increased 10 percent to $4.8 billion.
• Net income rose 22% over the past quarter.
• Earnings per share came in at 94 cents per share. (6 cents higher than expectations)
• Orders are 11% higher than they were last year.
• Gross margins of 45.3%.
• Nike regained its pricing power and did not have to discount products to sell inventory.
• Fantastic balance sheet with $4.7 billion dollars in cash and just $500 million in debt.

Shares of Nike currently trade at $85 a share and the stock is getting attractive again. The stock has been on a good run with shares up nearly 35% this year. The stock was up over 40% last week but has pulled back 5%. The stock even offers a small dividend yield of 1.4% I think that Nike's fair value in the low 80's. If investors get a chance to buy at this level, they may want to take a look at Nike's shares.

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