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Earnings Review: December 17, 2008

 December 17, 2008 08:46 PM
 

Late on Wednesday, sports apparel and footwear maker Nike Inc.(NYSE: NKE) announced  that second-quarter profit rose to $391 million, or 80 cents a share, from $359.4 million, or 71 cents a share in the corresponding quarter a year ago. Total Sales rose 6% to $4.6 billion from $4.3 billion. Analysts on average had projected earnings of 78 cents a share with sales of $4.69 billion. Sales rose in Europe, Asia Pacific and the Americas but dropped 1% to $1.51 billion in the key U.S. market. In Asia Pacific region, revenues climbed 22% to $821.4 million. Revenue in South America increased 21% to $384.6 million. European sales rose 6% to $1.3 billion. CEO Mark Parker said in a statement "Our second quarter results demonstrate the power of the Nike brand and the diversity of the Nike Inc. portfolio. I see the current state of our industry and the world as an incredible opportunity for Nike to be a better and stronger leader and we're going to seize that opportunity." Shares of Nike Inc. fell 2.74% in after hours trading on Wednesday.

Payroll and human resources services company Paychex Inc. (NASDAX: PAYX) said its fiscal second-quarter net income declined to $140.2 million or 39 cents a share, from $147.1 million, or 40 cents a share, in the second quarter of 2007. Revenue grew to $524.2 million from $507.8 million in the period. Analysts on average were looking for earnings of 40 cents a share on revenue of $530.4 million. The company also revised its fiscal 2009 outlook to reflect the current economic and financial conditions, and projected the economic weakness to continue through the remainder of the fiscal year. The company now expects revenue growth of 2% to 4% and net income decline of 7% to 5%. Shares of the company rose 0.53% in evening trade.

Take-Two Interactive Software Inc. (NASDAQ: TTWO) reported that net loss fourth quarter net loss widened to $15 million, or 20 cents a share, compared to a loss of $7.1 million, or 10 cents a share in the comparable quarter of 2007. Revenue increased nearly 11% to $323.4 million. Consensus estimates were for earnings of 5 cents a share on revenue of $326.7 million. Strauss Zelnick, Chairman of Take-Two stated "Take-Two's record results for the 2008 fiscal year reflect the fundamental strength of our business model. Our performance has benefited from the strategies we've implemented during the past 18 months to unlock the potential of our creative talent, sharpen our focus on the core business, and take costs out of our operations." For the first quarter ending in January, Take-Two expects to report an adjusted loss of 70 cents to 85 cents per share on sales of $175 million to $225 million. Take-Two Interactive plunged 18.97% in extended trading.

Herman Miller Inc. (NASDAQ: MLHR) registered a net income of $32.6 million or 60 cents a share in the second quarter, compared to profit of $41 million or 67 cents a share in the year ago quarter.


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