Under Armour Beats Estimates Yet Again

Under Armour (NYS: UA) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Under Armour met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share improved significantly.

Gross margins dropped, operating margins grew, net margins increased.

Revenue details
Under Armour chalked up revenue of $403.1 million. The 23 analysts polled by S&P Capital IQ wanted to see a top line of $402.8 million. Sales were 34% higher than the prior-year quarter's $301.2 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.62. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.62 for Q4 were 40% higher than the prior-year quarter's $0.44 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.6%, 10 basis points worse than the prior-year quarter. Operating margin was 13.7%, 200 basis points better than the prior-year quarter. Net margin was 8.1%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $394.1 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $2.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,651 members out of 2,885 rating the stock outperform, and 234 members rating it underperform. Among 968 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 931 give Under Armour a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Under Armour is outperform, with an average price target of $80.59.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Under Armour. Motley Fool newsletter services have recommended buying shares of Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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