Athletic apparel company Under Armour (NYSE: UAA) will be reporting earnings this Friday before the bell. Here’s what you need to know.
Under Armour missed analysts’ revenue expectations last quarter, reporting revenues of $1.10 billion, down 3.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations.
Is Under Armour a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Under Armour’s revenue to decline 7.7% year on year, a further deceleration from the 4.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Under Armour has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Under Armour’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 1.1%, and Levi's reported revenues up 4.3%, in line with consensus estimates. VF Corp traded up 7.6% following the results while Levi's was down 2.4%.
Read our full analysis of VF Corp’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 8% on average over the last month. Under Armour is up 16.6% during the same time and is heading into earnings with an average analyst price target of $6.30 (compared to the current share price of $5.69).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
