Under Armour (NYSE: UA) has reported earnings that look like more disappointment is on the way. The sports apparel company posted $0.06 EPS on revenues of $157.3 million, although First Call had estimates at $0.03 EPS on $153.6 million in revenues.
While this is above plan on the EPS side of the equation, this is actually a 71% drop in net income. Gross margin was 47.6%, down from 48.7% in the prior year.
The company is also backing 2008 revenue goals of $765 to $775 million, although estimates from First Call are $775.2 million. Unfortunately, Under Armour is backing away from the 40 to 50 basis points improvement in margins and now sees a drop of 30 basis points in margins to about 50%. Therefore net income expectations are now $103.5 to $104.5 million, down from prior targets of $108.5 to $110.5 million.
Shares are indicated down over 8% at $35.25 in thin volume pre-market trading; and the 52-week trading range is $25.39 to $73.40 (although lowest close was $28.01 and second lowest close was $31.29).
Jon C. Ogg
April 29, 2008
It’s Your Money, Your Future—Own It (sponsor)
Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.
If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.