Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Under Armour, Inc. (NYSE:UA) were coming up short today, falling by as much as 10% despite a strong earnings report as management hinted at a possible slowdown in sales growth on the earnings call. 

So what: The sportswear maker easily beat analyst estimates in another blowout quarter. Earnings came in at $0.06 a share following its split earlier this month, ahead of the consensus at $0.04, while revenue jumped 36% to $642 million, crushing expectations of $598.2 million. Shares were actually up in pre-market trading, but dipped when management said they saw sales growth slipping over the course of the year and that it would be a little behind last year's pace by the fourth quarter. 

Now what: Today's sell-off seems like more of a reflection of the high stock price rather than the company's performance, and looks like a textbook Wall Street overreaction, punishing a company for a strong quarter because it didn't raise guidance proportionally. Under Armour actually lifted its full-year revenue outlook by $40 million to $2.88 billion-$2.91 billion, equal to 24%-25% growth, and sees operating income growing by 25%-26%. Shares are certainly pricey at a P/E of 65, but I see no reason to sell after such a promising start to the year. Investors looking for a buying opportunity may want to take advantage of the dip.

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns 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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