Nike (NKE) rival Under Armor (UAA) reported better than expected results in the first quarter. During the Armor store jumped on the open, removed a place of purchase.
Under Armor Earnings
Estimates: Under Armor Earnings, consensus was in an uneven quarter, according to Zacks Investment Research. Revenue was seen virtually flat at $ 1.18 billion.
Results: Under Amour earnings came in at 5 cents per share. Revenue dropped to just over $ 1.2 billion, with North America selling down 3%.
Outlook: Under Armor, the year-round adjusted EPS now reaches 33-34 cents. It expects sales to increase by 3% -4%, which will be about $ 5.375 billion. Analysts had forecast under Amour's earnings per share of 34 cents and revenues of $ 5.377 billion before the quarterly rate.
Under Armor Stock
the shares were spared 7.7% to 23.74 morning trading on the stock market today, and moved over a 23.51 purchase point. Under Armor stock is in a 9-week flat base, MarketSmith shows analysis.
The Nike stock fell 0.1% early on Thursday. Adidas (ADDYY) was not active yet. Athleisure specialist Lululemon (LULU) increased 0.6%.
The relative strength line for Under Armor stock has struggled to gain momentum in recent weeks. Stocks were able to resume their 50-day moving average before earnings, which is a bullish sign.
Under the Armor share has a poor IBD-composite assessment on 51. The inventory control tool shows that earnings have fallen and dropped by 33% over over three years. In addition, sales have turned with low growth. They increased by 8% over the last three years and by only 2% in the previous quarter. Despite this, the performance of the latest stock market is good, and therefore it has a relative strength rating of 91.
Risk in submarine tax
Due to earnings, Wedbush Securities analyst Christopher Svezia rated under Armor stocks as neutral with a 20 price target. He argued that the struggling company did not have "infinite time" to create a comeback in North America, especially according to fierce competition.
"Although UA's inventory in the region is healthier and the brand sees success with product including HOVR and ProjectRock, it remains to be seen whether the brand demand is adequate in view of increased domestic competition with Nike (incremental risk for UA with" core " and women's offenses), Adidas, Puma, Hoka and others, he said in a research note. "Further industrial consolidation also remains a risk."
The analyst also said that while the firm has made "commendable progress", it has a high-value rating as weighted against high brand and execution risk in 2019.
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