Under Armor Beats Q2 Forecasts, Shares Jump

The company also increased its earnings guidance for the year


Real America IndexIncreased athletic shoe sales boosted earnings performance at Under Armor (NYSE:UA), sending its shares sharply higher.

The company reported today that it earned $7 million in the second quarter, up 17% from $6 million during the same period last year.

5 Stocks to Avoid This Earnings Season
5 Stocks to Avoid This Earnings Season

Revenue jumped 27% to $369 million, topping the $358 million Wall Street had anticipated, Reuters noted.

EPS for the quarter was 6 cents, the same as last year, but a penny more than analysts had predicted.

Investors liked the news. Shares of Under Armor shot up more than 11% in Tuesday afternoon trading.

The company said that it now anticipates operating income of between $205 million and $207 million and revenues of between $1.8 billion and $1.82 billion for 2012. That marked an increase from previous revenue guidance of between $1.78 billion and $1.8 billion.

Under Armor noted that sales of athletic footwear jumped 44% during the quarter.

Last month, investors hammered footwear rival Nike‘s (NYSE:NKE) shares after it missed earnings estimates for its fiscal fourth quarter.

Article printed from InvestorPlace Media, http://investorplace.com/2012/07/under-armor-beats-q2-forecasts-shares-jump/.

©2017 InvestorPlace Media, LLC