Under Armour Inc. Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

Under Armour Inc. (NYSE:UA) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for Under Armour Inc. rose to $46 million (88 cents per share) vs. $34.9 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 31.9% from the year earlier quarter.

Revenue: Rose 41.7% to $465.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: UA beat the mean analyst estimate of 83 cents per share. It beat the average revenue estimate of $445.6 million.

Quoting Management: Kevin Plank, Chairman, CEO, and President of Under Armour, Inc., stated, “We surpassed a billion dollars in net revenues last year, and the Brand has already topped that milestone this year through the first three quarters. Our product engines are as strong as ever, as demonstrated by consecutive quarters of 40% plus growth for the first time since 2007. We successfully launched Storm Fleece during the quarter, our cold weather Charged Cotton product. We also elevated our footwear message while continuing to enhance our global distribution network. Our strong results and the early acceptance of new products such as Storm Fleece and our Charge RC footwear give us confidence that the consumer continues to vote for our Brand.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 35.5%, with the biggest boost coming in the second quarter when revenue rose 42.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 78.2% and in the first quarter, the figure rose 69.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 4 cents in the first quarter, and by 7 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 2.6 percentage points to 48.4%. The contraction appeared to be driven by increased costs, which rose 49.1% from the year earlier quarter while revenue rose 41.7%.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 62 cents per share from 59 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.74 per to share to $1.81.

Competitors to Watch: Columbia Sportswear Company (NASDAQ:COLM), Crocs (NASDAQ:CROX), Deckers Outdoor (NASDAQ:DECK), Skechers (NYSE:SKX), K-Swiss (NASDAQ:KSWS), Steven Madden (NASDAQ:SHOO), The Timberland Company (NYSE:TBL), LaCrosse Footwear (NASDAQ:BOOT), Phoenix Footwear (AMEX:PXG), Foot Locker (NYSE:FL), The Finish Line (NASDAQ:FINL) and Nike Inc. (NYSE:NKE).

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(Source: Xignite Financials)