Under Armour (NYSE:UAA) Updates FY 2023 Earnings Guidance

Under Armour (NYSE:UAAGet Rating) issued an update on its FY 2023 earnings guidance on Monday morning. The company provided earnings per share guidance of $0.63-$0.68 for the period, compared to the consensus earnings per share estimate of $0.83. The company issued revenue guidance of $5.99 billion-$6.10 billion, compared to the consensus revenue estimate of $6.12 billion.

NYSE UAA traded up $0.60 during trading hours on Wednesday, hitting $9.71. 601,936 shares of the company were exchanged, compared to its average volume of 7,582,179. The stock has a 50-day moving average price of $14.78 and a 200 day moving average price of $18.39. The company has a quick ratio of 1.74, a current ratio of 2.30 and a debt-to-equity ratio of 0.32. Under Armour has a 52 week low of $8.97 and a 52 week high of $27.28. The stock has a market cap of $4.63 billion, a PE ratio of 20.77 and a beta of 1.25.

Under Armour (NYSE:UAAGet Rating) last announced its earnings results on Friday, May 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.05). Under Armour had a net margin of 3.89% and a return on equity of 16.20%. The business had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.34 billion. During the same quarter last year, the firm earned $0.16 EPS. The firm’s quarterly revenue was up 3.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Under Armour will post 0.68 earnings per share for the current year.

Under Armour declared that its Board of Directors has initiated a stock buyback plan on Wednesday, February 23rd that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

UAA has been the subject of several recent analyst reports. Morgan Stanley lowered Under Armour from an overweight rating to an equal weight rating and dropped their target price for the company from $14.00 to $11.00 in a research report on Thursday, May 19th. Wells Fargo & Company lowered their price target on Under Armour from $30.00 to $28.00 and set an overweight rating for the company in a report on Tuesday, April 5th. Wedbush lowered their price target on Under Armour to $18.00 and set a hold rating for the company in a report on Thursday, May 19th. JPMorgan Chase & Co. lowered their price target on Under Armour from $28.00 to $23.00 and set an overweight rating for the company in a report on Wednesday, March 9th. Finally, OTR Global upgraded Under Armour to a positive rating in a report on Thursday, January 27th. Fifteen research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of Hold and a consensus price target of $20.54.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Captrust Financial Advisors grew its position in Under Armour by 58.0% during the 1st quarter. Captrust Financial Advisors now owns 5,168 shares of the company’s stock worth $88,000 after purchasing an additional 1,897 shares during the period. DC Investments Management LLC acquired a new stake in Under Armour during the 1st quarter worth about $113,000. Bridgefront Capital LLC acquired a new stake in Under Armour during the 1st quarter worth about $194,000. Cetera Advisor Networks LLC acquired a new stake in Under Armour during the 1st quarter worth about $202,000. Finally, Golden State Equity Partners acquired a new stake in Under Armour during the 1st quarter worth about $272,000. 38.72% of the stock is currently owned by hedge funds and other institutional investors.

About Under Armour (Get Rating)

Under Armour, Inc, together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers its apparel in compression, fitted, and loose fit types. It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.

Further Reading

Earnings History and Estimates for Under Armour (NYSE:UAA)

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