What Happened?

Shares of athletic apparel company Under Armour (NYSE: UAA) jumped 13.2% in the morning session after the company reported fourth-quarter results that beat Wall Street's expectations and raised its full-year profit forecast. 

The athletic apparel maker posted a surprise adjusted profit of $0.09 per share, while analysts had forecast a loss. Although revenue fell 5.2% year on year to $1.33 billion, it still surpassed market expectations. Looking ahead, Under Armour provided a brighter outlook, raising its full-year adjusted earnings per share guidance to $0.11 at the midpoint. This marked a significant increase and provided investors with a key point of optimism, even as the company navigated a challenging sales environment.

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What Is The Market Telling Us

Under Armour’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Under Armour and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 22.4% on the news that the company reported second-quarter results and issued a significantly weaker-than-expected outlook for the third quarter. 

The sportswear maker's revenue for the second quarter came in at $1.13 billion, which met Wall Street's expectations but represented a 4.2% decline year-over-year. However, its adjusted earnings per share of $0.02 missed consensus estimates. The main concern for investors was the bleak guidance for the upcoming quarter. Under Armour projected third-quarter revenue of $1.31 billion, falling 4.1% short of analyst forecasts. More dramatically, the company guided for adjusted earnings per share of just $0.02 at the midpoint, a stark contrast to the consensus estimate of $0.26.

Under Armour is up 37.5% since the beginning of the year, and at $7.28 per share, it is trading close to its 52-week high of $7.60 from February 2025. Investors who bought $1,000 worth of Under Armour’s shares 5 years ago would now be looking at an investment worth $350.26.

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