UA: Under Armour Stock Trades Lower on Cautious Earnings Comments

Shares of Under Armour (UA) sank about 5% in Thursday morning trading after the athletic apparel maker issued disappointing guidance.

under armour 630

Despite posting a first-quarter profit up 70% over last year on revenue that jumped 36%, UA shares tumbled after the CFO Brad Dickerson told participants in a conference call that UA didn’t “expect the three primary drivers of our positive performers during the first quarter to carry forward into the current period,” Forbes noted.

UA expects full-year revenue of between $2.88 billion and $2.91 billion, an gain of between 24% and 25% over last year. However, some Wall Street analysts were looking for more optimistic guidance, especially given the first quarter’s results.

For the first quarter, UA reported earnings of $14 million. EPS came in at 6 cents, beating analysts who had predicted 4 cents. UA said it generated revenue of $642 million, compared to $472 million in the prior-year period. That also topped Wall Street predictions by about $45 million.

On Wednesday, Under Armour stock closed at $54.44 per share.

More Stocks in the News:

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC