The Motley Fool Previous Page


Investors Turn to Thoughts of Time Travel as Under Armour Gains

http://www.fool.com/investing/general/2014/01/30/investors-turn-to-thoughts-of-time-travel-as-under.aspx

Andrew Marder
January 30, 2014

In Back to the Future II, Biff Tannen, the jock-thug from the first movie, gives a sports almanac to his teenage self, allowing young Biff to bet on sports with 100% accuracy. By 1985, Biff is rich beyond imagination. Let's stop there and ignore all the horrific things that accompany the wealth -- death, deceit, destruction, other "D" words that are also bad. As an investor, don't you wish you had a newspaper from 2050, every now and then?

Today's results from Under Armour (NYSE: UA) would be a perfect chance to make bank. The stock is up more than 20% at midday. Actually, it seems like you might just sell the DeLorean.

Under Armour grows like kudzu
Under Armour's pop came from an incredible increase in earnings per share. Analysts expected the company to hit $0.53 per share -- it turned in $0.59. That was a 27% increase over the previous year and it came out of nowhere.

Well, that's not entirely true. Under Armour had a crazy-good year, with quarterly earnings per share rising between 26% and 160% in each of the prior two quarters. For the full year, earnings per share were up 24%. Biff -- if he hadn't already sold the DeLorean -- would be rich.

Recently, the company has had a series of announcements setting it up for a strong 2014 as well. New marketing partnerships, n