Under Armour Inc. (NYSE: UAA) 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.
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.