What to Expect When Under Armour Reports

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Under Armour Inc. (NYSE: UAA) is scheduled to release its most recent quarterly results before the markets open on Tuesday. The consensus estimates from Thomson Reuters call for breakeven earnings per share (EPS) on $1.31 billion in revenue. The fourth-quarter of last year reportedly had EPS of $0.23 and $1.31 billion in revenue.

Immediately following its most recent quarterly report, Under Armour shares hit a new multiyear low not seen since 2013. What stood out in that report was that it was the first quarter in which Under Armour did not post revenue growth — what the company is known for. Not to mention, the guidance did not paint a good picture for the rest of the year.

Most analysts have taken a neutral or negative stance on the stock. Also, the consensus is that revenues will be flat, adding to the negative sentiment.

Perhaps, D.A. Davidson best summed up how analysts feel:

Despite incremental progress on the product front and expanded distribution, the combination of distressed US wholesale performance and execution issues result in a much more muted path to recovery than we previously anticipated.

The firm already had decreased its guidance for the fourth-quarter and 2017 full year, but the question remains whether Under Armour will get its act together in North America, and what its outlook will be for 2018.

Excluding Monday’s move, the stock had underperformed the U.S. broad markets, and it was down nearly 5% year to date. Over the past 52 weeks, the stock was down roughly 37%.

A few analysts weighed in on Under Armour ahead of the earnings report:

  • Citigroup has a Neutral rating with a $15 price target.
  • Macquarie has an Underperform rating and an $8 price target.
  • Susquehanna has a Negative rating with an $11 price target.
  • Buckingham Research has a Neutral rating with a $17 target.

Shares of Under Armour were last seen up about 3.6% at $14.25 on Monday, with a consensus analyst price target of $13.08 and a 52-week range of $11.40 to $23.46.