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The Markets
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Nike runs circles around analyst estimates in its fourth quarter; announces US$15bn stock buyback

The sneaker giant expects to repurchase US$15bn worth of stock within the next four years

NIKE Inc (NYSE:NKE) announced its fiscal fourth-quarter earnings, crushing analyst estimates on earnings and revenue.

The sneaker powerhouse reported earnings of US$0.69 per share on revenue of US$9.8bn compared with US$0.60 EPS on revenue of US$8.68bn in the previous year’s fourth quarter.

The Oregon-based company surpassed Wall Street estimates of US$0.64 EPS on revenue of $9.41bn.

“Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America,” said CEO Mark Parker in a press statement.

“Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for NIKE’s next wave of long-term, sustainable growth and profitability,” he added.

The company also announced that its board of directors has authorized a four-year program to buy back US$15bn worth of stock. The company expects US$12bn worth of shares to be repurchased within fiscal 2019.

Shares of NIKE jumped more than 4% to US$74.74 in Thursday after-hours trading and continued to climb Friday morning, up more than 10% to US$79.72.

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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