Athletic apparel company Under Armour (NYSE: UAA) will be reporting results this Tuesday before market open. Here’s what to expect.
Under Armour beat analysts’ revenue expectations last quarter, reporting revenues of $1.33 billion, down 5.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS and EBITDA estimates.
Is Under Armour a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Under Armour’s revenue to decline 1.1% year on year, improving from the 11.4% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Under Armour rarely misses Wall Street’s revenue estimates.
Looking at Under Armour’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 28%, beating analysts’ expectations by 4.7%, and Carter's reported revenues up 8.1%, topping estimates by 3.2%. Figs traded down 24.4% following the results while Carter's was up 7.2%.
Read our full analysis of Figs’s results here and Carter’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 4% on average over the last month. Under Armour is up 4.9% during the same time and is heading into earnings with an average analyst price target of $7.73 (compared to the current share price of $6.44).
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