Under Armour Inc. Third Quarter Earnings Sneak Peek

Under Armour Inc (NYSE:UA) will unveil its latest earnings on Thursday, October 25, 2012. 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 net income of 52 cents per share, a rise of 23.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 53 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 52 cents 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 one cent, coming in at profit of 6 cents a share versus the estimate of net income of 5 cents a share. It marked the fourth straight quarter of beating estimates.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Wall St. Revenue Expectations: Analysts are projecting a rise of 23.7% in revenue from the year-earlier quarter to $575.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.09 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 regressed in this liquidity measure from 3.8 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 37.7% to $251.5 million while assets rose 12% to $777.3 million.

A Look Back: In the second quarter, profit rose 6.8% to $6.7 million (6 cents a share) from $6.2 million (12 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26.8% to $369.5 million from $291.3 million.

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 31.3% 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 41.9% in the fourth quarter of the last fiscal year and 20.8% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $3.44 (6.2%), from $55.31 to $58.75. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 8.2% (+$5.87) over that span. It saw one of its worst periods between November 15, 2011 and November 22, 2011 when shares fell for six straight days, dropping 9.9% (-$8.22) over that span.

Analyst Ratings: There are mostly holds on the stock with 12 of 20 analysts surveyed giving that rating.

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)

Don’t Miss These Additional Hot Stories:

Time to Buy This Dow Darling Now?

Are Google Shares a Buy Post-Earnings?

Should This Stock be in Your Portfolio After Its Latest Report?