Nike shares surged 9% to a record high on Friday after the company reported a solid first quarter and big beats on the top and bottom lines.
The stock is up 29% year-to-date.
On Thursday evening, the apparel giant reported adjusted earnings per share of $1.34, up 23%, and revenues of $8.4 billion.
Revenues from North America rose 8% — 9% excluding currency fluctuations — and jumped 30% in China.
Analysts expected $1.19 in adjusted earnings per share and $8.22 billion in revenues, according to Bloomberg. They were looking for 10% revenue growth in North America.
Compared with a year ago, future orders — placed by retailers worldwide for delivery between September and January — were 9% higher at the end of the quarter. Excluding the currency impact, they rose 17%, beating the forecast for 10.3% growth.
At the annual shareholders meeting last week, the company announced that revenues grew 10% to $30.6 billion in the most recent fiscal year.
Deutsche Bank analysts raised their price target on the stock to $140 from $125. In a note to clients on Friday, they wrote: "Although mgmt. kept FY16 plan largely the same, the broad-based strength Nike saw during the quarter indicates that brand momentum continues. Despite concerns over a weaker macro, the China business saw 30% revenue growth at higher operating margins."
Andrew Burns at D.A. Davidson wrote in a note that chances the company would revise its earnings guidance upward were high. "Capitalizing on a strong athletic cycle, Nike's leadership position is unchallenged," he wrote.
Here's a chart showing the lifetime of the stock:
