2 Stocks Jump on Friday

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- By Omar Venerio

Shares of NIKE Inc. (NKE) gained more than 7% on Friday after the company announced second-quarter earnings of 52 cents per share on revenue of $9.37 billion, a 9.6%year-over-year growth. The company beat earnings estimates by 7 cents and revenue expectations by $200 million.

Revenues for the NIKE Brand were $8.9 billion , achieving growth across all geographies and in NIKE Direct. Revenues for Converse were $425 million, a 6 % increase due to a growth in China and digital.


The g ross margin rose 80 basis points to 43.8 % due to higher average selling prices and margin expansion in NIKE Direct .

Moreover, the company repurchased in the trimester a total of 16.1 million shares for $1.3 billion .

Shares of Cintas Corp. (CTAS) gained 0.5 % on Frid ay after announcing secon d -quarter results. The company posted earnings of $1.76 per share and $ 1.72 b illion in revenues , a 6 . 8 % growth from the same trimester of 2017. The company beat earnings estimates by 6 cents and revenue estimations by $ 20 million.

Scott D. Farmer, the company ' s CEO , s aid , "We continue to make significant progress on integrating the G&K acquisition and implementing our enterprise resource planning system. The company is on pace to achieve another year of strong growth in revenue, earnings, and cash flow generation. "

The g ross margin was $775.2 million , 8.2% higher from last year's second quarter. The g ross margin ( as a percentage of revenue ) reached 45.1%, 50 basis points higher than the second quarter of last fiscal year.

Looking ahead the fiscal 2019 , the company expects total revenue between $6.87 billion and $6.91 bill ion and earnings per share in the range of $7.68 and $7.76.

D isclosure: The author holds no position in any stocks mentioned .

This article first appeared on GuruFocus.


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