Under Armour Earnings: Right Fit for Investors
Under Armour shares surged after it released better than expected first-quarter financial results before the markets opened on Thursday.
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Under Armour Inc. (NYSE: UAA) released its first-quarter financial results before the markets opened on Thursday. The company said that it had $0.05 in earnings per share (EPS) and $1.2 billion in revenue, which compared with consensus estimates that called for breakeven earnings on $1.18 billion in revenue. The same period of last year had breakeven earnings and $1.19 billion in revenue.
During the latest quarter, revenue increased 2% year over year, or 3% on a currency neutral basis. Also in this time, the company posted a gross margin of 45.2%, driven by product cost improvements, regional mix and prior period restructuring charges, offset by channel mix.
In terms of its segments, the company reported as follows:
- Apparel revenues increased 0.7% year over year to $774.6 million.
- Footwear revenues increased 7.6% to $292.5 million.
- Accessories revenues decreased 11.0% to $82.0 million.
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Looking ahead to the 2019 full year, the company expects to see EPS in the range of $0.33 to $0.34 and revenues growing 3% to 4% year over year. Consensus estimates call for $0.34 in EPS and $5.36 billion in revenue for the year.
Kevin Plank, board chair and chief executive of Under Armour, commented:
Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better. As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.
Shares of Under Armour traded up more than 8% to $23.90 just after Thursday’s opening bell. The 52-week range is $16.52 to $24.96, and the consensus price target was last seen at $21.28.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
