On Friday, Shares of Nike Inc (NYSE:NKE), gained 8.91% to $125.02.
Nike, stated financial results for its first quarter ended August 31, 2015. Diluted earnings per share raised 23% due to broad-based revenue growth, gross margin expansion, selling and administrative expense leverage, a lower effective tax rate and a lower average share count.
First Quarter Income Statement Review
Revenues for NIKE, Inc. raised 5 percent to $8.4 billion, up 14 percent on a currency-neutral basis.
- Revenues for the NIKE Brand were $7.9 billion, up 15 percent on a currency-neutral basis driven by growth in every geography and nearly every key category.
- Revenues for Converse were $555 million, up 3 percent on a currency-neutral basis, mainly driven by strong growth in the United States, partially offset by a decline in the United Kingdom.
- Gross margin expanded 90 basis points to 47.5 percent. The improvement was primarily attributable to higher average selling prices and continued growth in the higher margin Direct to Consumer (DTC) business, partially offset by higher product input and warehousing costs.
NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites (which the Company refers to as its Direct to Consumer or DTC operations), and through a mix of independent distributors and licensees throughout the world.
Shares of SunOpta, Inc. (USA) (NASDAQ:STKL), declined -11.88% to $5.49, during its last trading session.
SunOpta declared the pricing of a US$100,020,000 underwritten public offering comprising of 16,670,000 common shares at a public offering price of US$6.00 per share. The underwriters of the offering have the option to purchase up to an additional US$15 million or 2,500,500 common shares for a period of 30 days following the pricing of the offering. The offering is planned to close on September 30, 2015, subject to customary closing conditions.
SunOpta will use the net proceeds of the offering to fund a portion of the purchase price of the acquisition of Sunrise Holdings (Delaware), Inc. (“Sunrise”), the direct parent of Sunrise Growers Inc. If the Sunrise acquisition is not accomplished, SunOpta will use the net proceeds for general corporate purposes. As formerly declared on July 31, 2015, SunOpta has agreed, subject to customary closing conditions, to acquire Sunrise from an investor group led by associates of Paine & Partners LLC. Sunrise is the leading processor of conventional and organic individually quick frozen fruit in the United States, offering a full variety of frozen fruit products and packaging to retail private label and foodservice customers. The acquisition of Sunrise complements SunOpta’s existing frozen fruit and fruit ingredients businesses and is predictable to be accretive to SunOpta’s global foods platform.
SunOpta Inc. is a global company operating businesses focused on healthy products portfolio. The Company specializes in sourcing, processing and packaging of natural, organic and specialty food products. It operates in three segments: Global Ingredients, Consumer Products and Opta Minerals. It sources organic and non-genetically modified (non-GMO) crops from growers and suppliers. The Global Ingredients segment aggregates its North American-based Raw Material Sourcing and Supply and European-based International Sourcing and Supply operating segments.
Shares of Swift Transportation Co (NYSE:SWFT), declined -4.81% to $15.83, during its last trading session.
Swift Transportation has revised its full year 2015 Adjusted EPS guidance range to $1.43-$1.52 from $1.64-$1.74 as contrast to $1.38 in 2014. The change in the full year range is the result of the following items: the development on prior year accident and workers’ compensation claims and the corresponding impact to reserves which is predictable to be a $0.07 impact in the third quarter of 2015; the settlement of a class action lawsuit and related items which is predictable to be a $0.02 impact in the third quarter of 2015; the settlement of a previous lawsuit that resulted in a $0.03 charge in the second quarter of 2015; the additional carrying expense associated with the large volume of new tractors received late in the second quarter due to delivery delays and the catch up throughout the third quarter that has resulted in a noteworthy backlog of tractors being processed for trade or sale which is predictable to have an impact of about $0.05-$0.06 in the second half of 2015; and a reduction in predictable volumes of seasonal project business in the fourth quarter of 2015 due to customers’ recent logistical changes which could have an impact of $0.05-$0.06 of Adjusted EPS. Due to these developments, the Company now anticipates Adjusted EPS to be $0.30-$0.33 for the third quarter of 2015 and $0.48-$0.54 for the fourth quarter of 2015.
On September 24, 2015, the Company’s Board of Directors approved the repurchase of up to $100 million of its outstanding Class A common stock. The repurchases may be made using a variety of methods, which may comprise open market purchases, block trades, the implementation of a 10b5-1 plan, and/or other methods, in accordance with SEC and other applicable legal requirements. The Company does not intend to implement any program until following its third quarter letter to stockholders in late October. The timing, prices and volume of purchases will depend upon prevailing stock prices, the Company’s leverage ratio, general economic and market conditions and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the repurchase program may be suspended or suspended at any time at the Company’s discretion. The repurchase program is predictable to be funded through free cash flow, a reduction in planned capital expenditures, and borrowings on the Company’s existing credit facilities.
Swift Transportation Company (Swift Transportation Co.) is a multi-faceted transportation services company, operating the fleet of truckload equipment in North America from over 40 terminals near key freight centers and traffic lanes.
Finally, Union Pacific Corporation (NYSE:UNP), ended its last trade with 2.07% gain, and closed at $86.59.
Union Pacific Corporation invites interested parties to listen to third quarter 2015 earnings release presentation that will be broadcast live over the Internet and via teleconference on Thursday, October 22, 2015, at 8:45 a.m. Eastern Time.
Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. The Company is a Class I railroad operating in the United States, which has 31,974 route miles and maintains coordinated schedules with other rail carriers to move freight. It links 23 states in the western two-thirds of the country by rail, providing a supply chain link around the world.
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