The 10-second takeaway
For the quarter ended June 30 (Q2), Under Armour beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share stayed the same.
Margins contracted across the board.
Under Armour recorded revenue of $369.5 million. The 24 analysts polled by S&P Capital IQ looked for revenue of $357.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $291.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The 27 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.06 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.9%, 40 basis points worse than the prior-year quarter. Operating margin was 3.2%, 70 basis points worse than the prior-year quarter. Net margin was 1.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $571.4 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $1.81 billion. The average EPS estimate is $1.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,699 members out of 2,956 rating the stock outperform, and 257 members rating it underperform. Among 960 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 915 give Under Armour a green thumbs-up, and 45 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Under Armour is outperform, with an average price target of $50.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Under Armour. Motley Fool newsletter services have recommended buying shares of Under Armour. Motley Fool newsletter services have also recommended creating a bear put spread position in 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.