Under Armour (NYSE:UAA) earnings report for the athletic wear company’s third quarter of 2019 are out and it has UAA stock taking a beating on Monday. This comes despite its diluted earnings per share of 23 cents and revenue of $1.43 billion. These are both above Wall Street’s estimates of 18 cents per share and $1.41 billion.
Let’s take a closer look at the most recent Under Armour earnings report.
- Diluted EPS is down 8% from 25 cents in the third quarter of 2018.
- Revenue is sitting a slight bit lower YoY from $1.44 billion.
- Gross profit, as a percentage of revenue, was 48.30% during the quarter compared to 46.10% for the same time last year.
- Operating income comes in at $138.92 million, which is 16.77% better than Q3 2018’s $118.97 million.
- The Under Armour earnings report also includes a net income of $102.32 million.
- That’s a 35.94% increase over its net income of $75.27 million from the same period of the year prior.
Some of the bad news in the Under Armour earnings report has to do with its 2019 outlook. The company says it now expects revenue for the period to be up 2%. It was previously looking for a revenue increase between 3% and 4% in 2019.
More bad news for the company comes from an investigation into its accounting practices. David Bergman, CFO of Under Armour, says that the company is complying with the investigation. He also notes that it doesn’t believe it has done anything wrong with its accounting or disclosures.
UAA stock was down 20.01% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
