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Under Armour, Inc. (UA) is scheduled to report its Q2 2012 results on July 24, 2012, before market opens. The street expects EPS and revenue of $0.05 and $358.39M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from UA and the news from its closest competitors.

Under Armour, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.14 EPS, beating analyst estimates of $0.12.

Under Armour, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.05 based on 27 analysts' estimates, just below from $0.06 a year ago. Revenue estimates are $358.39M, up from $291.34M a year ago. The median target price by analysts for the stock is $52.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 20, 2012, UBS downgraded the company from Buy to Neutral.
  • On May 8, 2012, UBS upgraded the company from Neutral to Buy.
  • On May 8, 2012, The Benchmark Company initiated Buy rating for the company.
  • On April 26, 2012, UBS reiterated Neutral rating for the company.
  • On April 17, 2012, Northland Securities reiterated Market Perform rating for the company.
  • On April 16, 2012, Canaccord Genuity reiterated Buy rating for the company.
  • On April 3, 2012, Stifel Nicolaus downgraded the company from Buy to Hold.
  • On March 28, 2012, Longbow downgraded the company from Buy to Neutral.
  • On January 30, 2012, Needham upgraded the company from Hold to Buy.

Latest News

  • On April 20, 2012, Under Armour, Inc. updated fiscal 2012 guidance and expects net revenues in the range of $1.78 billion to $1.80 billion, representing growth of 21% to 22% over 2011.
  • On March 7, 2012, Under Armour, Inc. announced that for fiscal 2012, it expect net revenues growth at the low end of longer-term growth target of 20% to 25%, and operating income growth at the higher end of longer-term growth targets of 20% to 25%. This means just as focused on the bottom line as the top line and continue to target longer-term operating margins in excess of 12% to 13%.
  • On January 26, 2012, Under Armour, Inc. announced that it continues to expect fiscal 2012 operating income (EBIT) growth at the higher end of its 20% to 25% long-term growth target.

Competitors

Columbia Sportswear (COLM), Deckers Outdoor (DECK), Nike (NKE), Steven Madden (SHOO), and V.F. Corporation (VFC) are considered major competitors for Under Armour and the table below provides the key metrics for these companies and the industry.

Under Armour, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)UA Chart

UA data by YCharts

Competitors' Latest Development

  • On July 19, 2012, VF Corp announced that the Board of Directors declared a quarterly cash dividend of $0.72 per share, payable on September 20, 2012 to shareholders of record as of the close of business on September 10, 2012.
  • On June 28, 2012, Nike, Inc. announced that for fiscal 2013, on ongoing basis it expects revenue growth at or slightly above the Company's high single digit target range. on a reported basis, it expects mid to high single digit revenue growth and expects to deliver high single digit EPS growth in fiscal 2013.
  • On June 13, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Deckers Outdoor Corporation. The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company was unable to mitigate the effects of dramatically increasing prices for sheepskin; (2) the Company was experiencing a substantial reduction in demand due to the unusually warm weather; (3) Deckers' aggressive expansion resulted in the over-supply of the Company's UGG brand; (4) the Company's inventory levels for its UGG brand were increasing rapidly, causing increased mark-downs and close-outs, adversely affecting revenues; and (5) as a result of the foregoing, the Company's gross margin was negatively impacted.
  • On June 8, 2012, Ryan & Maniskas, LLP announced that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of Deckers Outdoor Corporation between October 27, 2011 and April 26, 2012, inclusive (the Class Period).
  • On June 6, 2012, Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announced that the firms are investigating legal claims against the officers and Board of Deckers Outdoor Corporation (Company) related to potential securities violations by the Company between October 27, 2011 and April 26, 2012 (the Class Period).
  • On June 5, 2012, The law firm of Izard Nobel LLP, which has experience representing investors in prosecuting claims of securities fraud, announced that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of Deckers Outdoor Corporation (Deckers or the Company).
  • On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
  • On June 4, 2012, Law Firm of Levi & Korsinsky announced that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of investors who purchased Deckers Outdoor Corporation stock between October 27, 2011 and April 26, 2012.
  • On June 4, 2012, Rigrodsky & Long, P.A. announced that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of Deckers Outdoor Corporation between October 27, 2011 and April 26, 2012, inclusive alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors.
  • On June 4, 2012, Robbins Umeda LLP announced that it is investigating whether officers and directors of Deckers Outdoor Corporation breached their fiduciary duties to shareholders by causing the Company to issue improper statements concerning its financial guidance for 2012, inventories, gross margins, and demand for the Company's products.
  • On June 2, 2012, Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Deckers Outdoor Corporation common stock during the period between October 27, 2011 and April 26, 2012.
  • On May 31, 2012, NIKE, Inc. announced its intention to divest of two of its wholly-owned affiliate brands - Cole Haan and Umbro - to sharpen its focus on driving growth in the NIKE, Jordan, Converse and Hurley brands.
  • On May 15, 2012, Nike, Inc. announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share on the Company`s outstanding Class A and Class B Common Stock payable on July 2, 2012, to shareholders of record at the close of business on June 4, 2012.
  • On May 3, 2012, Steven Madden Ltd. announced that fiscal 2012, it expects net sales to increase 24%-26% from fiscal 2011, compared to previous guidance of a 21%-23% increase and diluted EPS is now expected to be in the range of $2.62-$2.72, compared to previous guidance of $2.60-$2.70. The Company reported net sales of $968.5 million in fiscal 2011.
  • On April 27, 2012, VF Corp announced that based on strong first quarter results, the Company expects adjusted earnings per share (EPS) in fiscal 2012 to rise to approximately $9.45 per share, up $0.15 from the $9.30 per share earlier guidance range.
  • On April 26, 2012, Deckers Outdoor Corporation announced that for second quarter of 2012, it expects revenue to increase approximately 8% over fiscal 2011. The Company expects second quarter 2012 diluted loss per share of approximately $(0.60) compared to the diluted loss per share of $(0.19) reported in the second quarter of 2011.
  • On March 22, 2012, Nike, Inc. announced that on a reported basis, the Company expect low double digit revenue growth for the fourth quarter of 2012 resulting in mid teens growth for fiscal 2012 and expects earnings per share growth approaching the Company' s mid teens long term goal.
  • On March 8, 2012, VF Corporation and John Varvatos announced that they have signed a definitive agreement to sell the majority ownership interest in the Company to Lion Capital LLP, with Mr. Varvatos retaining an ownership position.
  • On February 23, 2012, Deckers Outdoor Corporation and Romeo & Juliette, Inc. and Tom Romeo jointly announced that they have reached a settlement in Deckers Outdoor Corporation v. Tom Romeo and Romeo & Juliette, Inc. The litigation was resolved to the parties' mutual satisfaction, by mutual agreement.
  • On February 21, 2012, Steven Madden Ltd. announced that for fiscal 2012, it expects net sales to increase 21%-23% compared to fiscal 2011 and diluted EPS to be in the range of $2.60-$2.70. The Company reported net sales of $968.5 million in fiscal 2011.
  • On February 16, 2012, VF Corporation announced that it has declared a quarterly cash dividend of $0.72 per share, payable on March 19, 2012, to shareholders of record as of the close of business on March 9, 2012.
  • On February 16, 2012, VF Corporation announced that for fiscal 2012, it expects revenues to increase 15% or 17% in constant dollars and adjusted EPS, excluding Timberland-related expenses, to be approximately $9.30. The Company reported revenues of $9.46 in fiscal 2011.
  • On February 7, 2012, Nike, Inc. announced that it has entered into a strategic partnership with DyeCoo Textile Systems B.V., a Netherlands-based company that has developed and built the first commercially available waterless textile dyeing machines.

Technical Overview


The stock has a market capitalization of $5.27B and is currently trading at $50.53 with a 52 week range of $26.31 - $53.93. The stock's year-to-date performance has been 40.75%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Under Armour Earnings Preview