What to Expect When Under Armour Reports Tuesday

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Under Armour Inc. (NYSE: UAA) is scheduled to release its fourth-quarter earnings report before the markets open on Tuesday. Thomson Reuters consensus estimates are calling for $0.04 in earnings per share (EPS) and $1.38 billion in revenue. The same period of last year reportedly had break-even earnings and $1.37 billion in revenue.

This company runs second in sales of most products in the category to Nike, and sometimes German athletic gear maker Adidas. While Nike sponsors more athletes than Under Armour, the smaller company has spent tens of millions of dollars for relationships with stars like basketball great Steve Curry, who has won two NBA Most Valuable Player Awards and three NBA championships with the Golden State Warriors.

One of Under Armour’s other major athlete spokespersons, Tom Brady, just posted another big Super Bowl win. And sure enough, the front page of Under Armour’s website today that reads “Congrats to Tom Brady on His Sixth Championship Ring.” Next to it is a promotion for his football cleats.

Previously, the sporting apparel maker outlined a forecast for its expectations and plans out to 2023, with gross margins of close to 50%, $700 million in annual cash flow and its return on invested capital to reach 20%.

Under Armour has outperformed the broad markets, with its stock up about 17% year to date. In the past 52 weeks, the stock is up over 56%.

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

  • Pivotal Research has a Hold rating and a $22 price target.
  • B. Riley has a Sell rating with a $12 target price.
  • Goldman Sachs has a Buy rating and a $28 price target.
  • Atlantic Securities has an Underweight rating.
  • Citigroup has a Neutral rating and a $22 price target.

Shares of Under Armour were last seen trading at $20.77, in a 52-week range of $13.85 to $24.96. The consensus analyst price target is $21.08.