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.
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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