Under Armour Rises on Solid Earnings and Guidance

By Chris Lange Updated Jan 13, 2:26PM EST · Published Jan 28, 10:25AM EST

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Under Armour Rises on Solid Earnings and Guidance — © Thinkstock

Under Armour Inc. (NYSE: UA) reported its fourth-quarter financial results before the markets opened on Thursday. The company had $0.48 in earnings per share on $1.17 billion in revenue. That compared to consensus estimates from Thomson Reuters of $0.46 in EPS on revenue of $1.12 billion. The same period from the previous year had $0.40 in EPS on $895.20 million in revenue.

On a currency neutral basis, net revenues increased 33% from the prior year’s period. Operating income increased 21% in the fourth quarter of 2015 to $178 million compared with $146 million in the prior year’s period.

In terms of 2016 guidance, the company expects net revenues of roughly $4.95 representing 25% growth from 2015 to 2016, operating income is expected to be $503 million, representing growth of 23% over 2015. The consensus estimates call for $1.34 in EPS on $4.91 billion in revenue for the 2016 full year.

Kevin Plank, chairman and CEO of Under Armour, commented on earnings:

Our core business remains incredibly strong and our 31% net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our Brand. We delivered our 25th consecutive quarter of more than 20% net revenues growth in our largest product category of apparel. Moreover, we continued to diversify our product offering and geographic reach, driving significant market share gains in key strategic areas like basketball footwear, while better meeting the needs of the global athlete with investments in our global Brand House stores and e-commerce sites helping drive 70% growth in international. With our continued investments across people, systems, and digital, we are confident in our ability to build upon this tremendous momentum, reinforcing our belief that we are just getting started in becoming the next great global brand.

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On the books, cash and cash equivalents decreased 78% to $130 million at the end of December 2015, compared with $593 million in the same period last year.

Shares of Under Armour were up 14% at $78.17 on Thursday, with a consensus analyst price target of $63.23 and a 52-week trading range of $63.23 to $105.89.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.