The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Under Armour beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins grew.
Under Armour reported revenue of $505.9 million. The 24 analysts polled by S&P Capital IQ foresaw revenue of $497.8 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $403.1 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 $0.47. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.47 for Q4 were 52% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.3%, 130 basis points worse than the prior-year quarter. Operating margin was 16.1%, 240 basis points better than the prior-year quarter. Net margin was 9.9%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $472.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $1.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,738 members out of 2,990 rating the stock outperform, and 252 members rating it underperform. Among 979 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 932 give Under Armour a green thumbs-up, and 47 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Under Armour is hold, with an average price target of $56.20.
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Seth Jayson owned shares of the following at the time of publication: Under Armour. 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 recommends Under Armour. The Motley Fool 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.