Under Armour Inc. Earnings: Beats Analysts’ Estimates

Under Armour Inc. (NYSE:UA) reported net income above Wall Street’s expectations for the first quarter. Under Armour is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth.

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Under Armour Earnings Cheat Sheet for the First Quarter

Results: Net income for Under Armour Inc. rose to $14.7 million (28 cents per share) vs. $12.1 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year-earlier quarter.

Revenue: Rose 22.9% to $384.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Under Armour Inc. beat the mean analyst estimate of 24 cents per share. Analysts were expecting revenue of $379.8 million.

Quoting Management: Kevin Plank, Chairman, CEO, and President of Under Armour, Inc., stated, “First quarter results underscore that when we bring innovation and value to our product, we win with the consumer. Our ability to bring meaningful innovation to the athlete accelerated this past quarter. In addition to introducing new technologies like ColdBlack and Armour Bra, we enhanced our fit profiles in key Women’s categories including bottoms and Charged Cotton, upgraded the fabrication and feel of our Tech Tee, and saw strong results with our $120 Charge RC running shoe. As we look at the rest of 2012, we will continue to emphasize innovation and design throughout our product spectrum, including a sharp focus on our baselayer and Footwear platforms.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 35.4%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 42.3% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 41.9% and in the third quarter of the last fiscal year, the figure rose 31.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.

Gross margin shrank 0.8 percentage point to 45.6%. The contraction appeared to be driven by increased costs, which rose 24.8% from the year earlier quarter while revenue rose 22.9%.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 12 cents per share, down from 16 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.33 a share to $2.34 over the last thirty days.

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

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