Under Armour Fourth Quarter Earnings Sneak Peek

Under Armour Inc (NYSE:UA) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Under Armour is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth.

Under Armour Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 46 cents per share, a rise of 48.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 33.3% versus last year to $1.20.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 54 cents a share versus the estimate of profit of 52 cents a share. It marked the fourth straight quarter of beating estimates.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 24.6% to $57.3 million (54 cents a share) from $46 million (88 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 23.6% to $575.2 million from $465.5 million.

Here’s how Under Armour traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

ua

Wall St. Revenue Expectations: Analysts predict a rise of 23.5% in revenue from the year-earlier quarter to $497.9 million.

Stock Price Performance: Between November 27, 2012 and January 25, 2013, the stock price had fallen $5.85 (-10.8%), from $54.10 to $48.25. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 28, 2012, when shares rose for 10 straight days, increasing 9.9% (+$4.95) over that span. It saw one of its worst periods between October 18, 2012 and October 26, 2012 when shares fell for seven straight days, dropping 12% (-$7.12) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 26.8% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 20.8% in the first quarter and 6.8% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 13 of 21 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.32 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.09 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 8.4% to $842.3 million while liabilities rose by 0.9% to $253.8 million.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)