Under Armour Inc.'s stock rose 3% early Thursday, following the company's announcement that it had beat profit estimates for its fiscal third quarter.

Financial Results

The Baltimore-based sporting apparel company reported net income of $114.1 million, or 26 cents a share, for the quarter, compared with $121.6 million, or 27 cents a share, in the same period last year. Adjusted per-share earnings came in at 19 cents, exceeding the 11 cent FactSet consensus.

Despite a decrease in revenue from last year, which fell to $1.486 billion from $1.582 billion, Under Armour remains optimistic about its performance.

CEO's Optimistic Outlook

Under Armour's CEO, Stephanie Linnartz, stated in a press release: "Despite a mixed retail environment during the holiday season, our third-quarter revenue results were in line with our expectations. We were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook."

Revised Guidance for 2024

The company has made adjustments to its 2024 guidance. It now expects revenue to be down 3% to 4%, slightly narrower than its previous guidance of down 2% to 4%. As for earnings per share (EPS), the projected range is between 57 cents and 59 cents, with adjusted EPS ranging from 50 cents to 52 cents. The FactSet consensus for EPS is 49 cents, with an expected revenue decline of 2.9%.

Stock Performance

Over the past 12 months, Under Armour's stock has experienced a decline of 24%. In contrast, the S&P 500 has seen a gain of 21%.

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