Another massive earnings report was just released, making investors in Under Armour Inc Class A (NYSE: UAA) some serious money. The company beat expectations on both the top and bottom line before releasing guidance that led to further excitement. Today, we’ll talk about:
- What we saw from the UAA earnings report;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
UAA Climbs On Earnings
As mentioned above, Under Armour released its earnings report for the third quarter, blowing away expectations on botht eh top and bottom line. Here’s what we saw:
- Earnings Per Share – In terms of earnings per share, UAA did overwhelmingly well. The company more than doubled analyst expectations, reporting earnings for the third quarter at $0.25 per share. Analysts only expected that the company would generate earnings of $0.12 per share.
- Revenue – Revenue also came in ahead of expectations. During the quarter, analysts expected that the company would generate revenue in the amount of $1.41 billion. However, revenue came in at $1.44 billion.
- Guidance – In terms of guidance, the company said that it is expecting to earn between $0.19 and $0.22 in the fourth quarter. That’s a good increase from the previous guidance of $0.16 per share or $0.19 per share.
In a statement, Kevin Plank, CEO at UAA, had the following to offer:
Our third-quarter results demonstrate that our multi-year transformation is on track… As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences. Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Under Armour, the news proved to be overwhelmingly positive. After all, earnings reports provide the most up to date financial information investors have as they make investments based on relatively outdated data. So, a strong earnings report is bound to excite, and that’s what it did. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:50), UAA is trading at $21.99 per share after a gain of $3.80 per share or 20.89% so far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on UAA. In particular, we’re interested in following the story surrounding the company’s continued growth and seeing whether or not the company’s fourth quarter results will lead to this much excitement. We’re also watching the company’s global expansion as it seems to have played a key role in the success of the third quarter. Nonetheless, we’ll continued to follow the story closely and bring the news to you as it breaks!
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