Finish Line Inc (FINL), Research In Motion Ltd (BBRY), NIKE, Inc. (NKE): Hunting for Long-Term Opportunities This Week

Worldwide athletic leader

Earnings on Thursday, June 27 after market close; EPS $0.75 / Revenue $6.64B

Despite it’s leading market share position, sporting goods maker NIKE, Inc. (NYSE:NKE) is adapting to a new normal of higher expenses with rising labor & material costs. On the revenue front, sales are slowing in growth markets such as China.

For Thursday’s earnings call, investors will be looking for stabilization in China as well as profit margin improvement in Americas and Western Europe. Let’s consider both aspects before reaching a conclusion.

Chinese competitors such as ANTA Sportswear, 361 Degrees, and Xtep International all have reported earnings in the last month. Overall, business is improving compared to the prior quarter but sales remain lower than last year. I expect a similar scenario at NIKE, Inc. (NYSE:NKE); analysts expect sales to grow 1% for the quarter.

Western Europe has been NIKE, Inc. (NYSE:NKE)’s least profitable region, but the company is showing positive signs of restructuring. Operating margin has fallen from a high of 22.7% back in 2009 to a low of 14.4% during 2012. Management is committed to restoring profitability in 2013, with margins rebounding to 17.1% during the last quarter.

The bottom line: It’s difficult to capture all of the moving parts at NIKE, Inc. (NYSE:NKE), but I expect an in-line quarter. The stock remains a solid long-term buy, although patient investors may find a better entry point.

Foolish takeaway

Market participants often deviate their attention between the present and future, creating opportunities for long-term investors.

Readers might consider BlackBerry, Finish Line, and NIKE, Inc. (NYSE:NKE) based on the scenarios above.

Thanks for reading, and consider subscribing to my posts for more Fool ideas on outperforming the market.

The article Hunting for Long-Term Opportunities This Week originally appeared on Fool.com and is written by John Macris.

John Macris has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.