The 10-second takeaway
For the quarter ended June 30 (Q2), Under Armour beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Under Armour recorded revenue of $454.5 million. The 25 analysts polled by S&P Capital IQ expected a top line of $449.0 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $369.5 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 $0.16. The 31 earnings estimates compiled by S&P Capital IQ averaged $0.13 per share. GAAP EPS of $0.16 for Q2 were 167% higher than the prior-year quarter's $0.06 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 48.3%, 240 basis points better than the prior-year quarter. Operating margin was 7.1%, 390 basis points better than the prior-year quarter. Net margin was 3.9%, 210 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $708.1 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $2.24 billion. The average EPS estimate is $1.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,787 members out of 3,036 rating the stock outperform, and 249 members rating it underperform. Among 1,036 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,000 give Under Armour a green thumbs-up, and 36 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 $60.88.
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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.