Under Armour Was a Big Earnings Underdog in Q3
Under Armour shares popped after it released better than expected third-quarter financial results and an asset sale before the markets opened on Tuesday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Under Armour Inc. (NYSE: UAA | UAA Price Prediction) released its third-quarter financial results before the markets opened on Tuesday. The company said that it had a $0.26 in earnings per share (EPS) and $1.40 billion in revenue, while the consensus estimates had called for just $0.03 in EPS on $1.16 billion in revenue. In the same period of last year, the apparel maker said it had $0.23 in EPS and $1.43 billion in revenue.
In a separate release, the company announced that it has agreed to sell its MyFitnessPal platform to Francisco Partners. The transaction is valued at $345 million and is expected to close within the fourth quarter of this year.
Back to earnings: Revenue remained relatively flat year over year. The company posted a gross margin of 47.9%, driven by channel mix benefits and supply chain efficiencies.
For its segments, the company reported as follows:
- Apparel revenues decreased 5.9% year over year to $927.0 million.
- Footwear revenues increased by 19.2% to $298.7 million.
- Accessories revenues were 22.8% higher to $145.1 million.
[nativounit]
Looking ahead to the 2020 full year, the company expects to see EPS in the range of $0.47 to $0.49 and revenues declining in a high-teen percentage rate compared to 2019 results. The analysts currently have consensus estimates of a net loss of $0.72 per share on and $3.91 billion in revenue for the year.
Under Armour stock traded up more than 9% early Friday to $15.05 a share. The 52-week trading range is $13.16 to $21.96, and the consensus price target was last seen at $11.46.
[recirclink id=803688][wallst_email_signup]
Contact [email protected] for any questions or corrections.
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.
