In this segment of the Motley Fool Money podcast, Chris Hill, Jason Moser, Matt Argersinger and Simon Ericsson discuss what we learned this earnings season about the nation's biggest cable company and the world's newest athletic gear and footwear powerhouse.
A full transcript follows the video.
This podcast was recorded on July 29, 2016.
Chris Hill: Welcome back to Motley Fool Money. Chris Hill here in studio with Matt Argersinger, Jason Moser, and Simon Erickson. Comcast shares hitting a new high this week after second quarter profits and revenue both came in higher than expected. Simon, what happened to cord cutting?
Simon Ericsson: I don't know, Chris. I'm concerned about the capital allocation, personally. I mean, the movie revenue was down 40% in NBCUniversal, but they just acquired DreamWorks for $4 billion, capex was up 15% as they're investing in Xfinity, but everyone's cord cutting these days, and they bought back $1 billion of shares at all-time highs. I'm just a little bit nervous as an investor about their allocation.
Chris: Second-quarter profits for Under Armour fell 58%. Part of that was the ripple effect of Sports Authority closing its doors. Matty, we knew this was coming.
Matt Argersinger: We knew it was coming. I'm not surprised at the profit drop. What I am very impressed by, though, is the revenue. The overall revenues were up 28%, $1 billion in a quarter, but two really impressive numbers to me, especially: International net revenues are up 68% year over year. This is a place Under Armour kind of struggled in recent years, and the fact that they're really seeing that kind of growth outside of North America, it really speaks volumes for the brand. And then of course, the footwear, up 58%. We know Steph Curry's having a big impact there, but ... several years ago, really didn't think Under Armour would be a factor at all in the shoe market, and here they are, on pace for $1 billion revenue for the next twelve months.
Chris: Summer Olympics starting up next week. Do you have an event you're looking forward to?
Matt: Oh, come on. It's the modern pentathlon. I mean, come on. Horse riding, shooting a pistol, swimming.
Chris: I love it. Simon, what about you?
Simon: Trampoline.
Chris: Trampoline?
Matt: That's an event?
Jason Moser: I've been shuttling my daughters back and forth to horseback camp all week, and it's just really reminded me how much I love animals. With horses, in particular, they're just, unbelievable when you get up close to them. I'm going with equestrian.
Chris: I got to go decathlon. I just, you know.
Matt: Mine's got horse riding and fencing and shooting. OK.
Jason: Sounds like an accident waiting to happen.
Chris: All right. Earnings-palooza continues. Stay right here. You're listening to Motley Fool Money.
