Under Armour Sprints: Fool by Numbers

On Wednesday, Rule Breakers selection Under Armour (NYSE: UA  ) released Q4 2006 earnings for the period ended Dec. 31.

  • Per-share earnings fell short of estimates by a penny, leading to a sell-off today. The shares are down more than 6% as of this writing.
  • I'm not sure that's justified. Sales growth outpaced gains in both receivables and inventory. Cash on hand, meanwhile, is up by more than 12%.
  • What's more, the new shoe business seems to be doing well. Footwear accounted for roughly 6% of revenue during the quarter.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$135,283

$87,303

55.0%

Net Profit

$11,851

$6,994

69.4%

EPS

$0.24

$0.08

200.0%

Diluted Shares

49,814

44,083

13.0%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

50.57%

48.68%

1.89

Operating Margin

13.12%

14.73%

(1.61)

Net Margin

8.76%

8.01%

0.75

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$70,655

$62,977

12.2%

Accounts Rec.

$71,867

$53,132

35.3%

Inventory

$81,031

$53,607

51.2%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$68,121

$43,864

55.3%

Total Debt

$6,257

$8,391

(25.4%)



Learn the ways of the balance sheet.

Cash Flow Checkup

No cash flow statement provided. (Lame!)

Find out why Fools always follow the money.

Related Companies:

  • Dick's Sporting Goods (NYSE: DKS  )
  • K-Swiss (Nasdaq: KSWS  )
  • Nike (NYSE: NKE  )

Related Foolishness:

Under Armour is a Motley Fool Rule Breakers pick. David Gardner and his team of analysts have unearthed six stocks that have more than doubled in the first two years of this market-beating service. Want to find out who they are? Click here to test-drive Rule Breakers for 30 days. There's no obligation to subscribe.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, ranked 955 out of more than 21,000 in Motley Fool CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Get the skinny on all the stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.


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