Under Armour Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Under Armour (NYS: UA) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Under Armour met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.


Gross margins expanded, operating margins contracted, net margins grew.

Revenue details
 Under Armour logged revenue of $575.2 million. The 22 analysts polled by S&P Capital IQ predicted revenue of $576.1 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $465.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.54. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.54 for Q3 were 23% higher than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 48.7%, 30 basis points better than the prior-year quarter. Operating margin was 15.8%, 30 basis points worse than the prior-year quarter. Net margin was 10.0%, 10 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $502.2 million. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $1.19.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,703 members out of 2,963 rating the stock outperform, and 260 members rating it underperform. Among 971 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 925 give Under Armour a green thumbs-up, and 46 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Under Armour is hold, with an average price target of $55.59.

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The article Under Armour Beats Analyst Estimates on EPS originally appeared on Fool.com.

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 recommend 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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