Under Armour Scores Solid Q3 Earnings and Guidance
Under Armour released better-than-expected third-quarter earnings report before the markets opened on Tuesday.
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Under Armour Inc. (NYSE: UAA) released its third-quarter earnings report before the markets opened on Tuesday. The sports apparel firm posted $0.25 in earnings per share (EPS) on $1.44 billion in revenue, compared with consensus estimates of $0.12 in EPS and revenue of $1.42 billion. The same period of last year reportedly had EPS of $0.22 and $1.41 billion in revenue.
During the most recent quarter, restructuring and impairment charges totaled $19 million.
The company expects to incur approximately $200 to $220 million in pretax restructuring and related charges in connection with its previously announced 2018 restructuring plan. Through the third quarter of 2018, the company has recognized pretax costs of $154 million, inclusive of $24 million of pretax costs recognized in the third quarter.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $0.19 to $0.22 (up from the previous range of $0.16 to $0.19) and revenue to increase approximately 3% to 4%. Consensus estimates call for $0.17 in EPS and $5.18 billion in revenue for the year.
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On the books, Under Armour’s cash and cash equivalents decreased by 35% to $169 million from the $258.0 million in the same period of last year.
Kevin Plank, Under Armour board chair and chief executive, commented:
Our third quarter results demonstrate that our multi-year transformation is on track. As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences. Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders.
Shares of Under Armour traded up over 23% early Tuesday to $22.45, in a 52-week range of $11.40 to $24.69. The consensus analyst price target is $19.11.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
