Under Armor (UAA) reported better than expected fourth-quarter revenue and sales early Tuesday. Before the open, Under Armor stock fell early on Tuesday after athletic clothing hunters gave weak revenue guidance for the current quarter.
Under Armor Earnings
Estimates: Analysts expected Under Armor earnings per share of four cents while breaking last year. Revenue was set to climb 7% to $ 1.38 billion, according to Zacks Investment Research.
Results: Under Armor earnings rose to 9 cents per share. Revenue came in at $ 1.39 billion. Sales in North America fell 6%, while international sales jumped 24%. Gross margin of 45.1% peaked impressions. Inventory dropped 12% to the lowest within nearly two years.
View: Under Armor, its 2019 financial targets were rated from December, and forecasts 3% -4% revenue growth and EPS of 31-33 cents. Under Armor, Q1 revenues are slightly lower than estimates for a 2% gain.
Under Armor Stock
Stocks, which initially signaled a move, bought a 21.62 purchase point on the premarket 2.8% to 20.20 shortly after the stock market open. Under Armor stock is in a 10-week cup-with-handle base, MarketSmith analysis shows. However, it has turned for speed, with the relative strength of the lines for more than six months. The shares are still well below their full-time level in 2015, just below the 53-level level.
A positive sign of Under Armor stock is the fact that it is trading over its 50 and 200 day moving averages. The price was also up above the average volume last week, another bullish indicator.
Under Armor stock does not qualify as a CAN SLIM stock. It currently has poor basic reasons, and therefore the IBD Composite Rating is a small 36. The IBD Stock Checkup Tool shows the most important earnings per share rating of 23 is well-deserved, as it has a three-year EPS growth of -35%. Sales growth is also weak and increases by only 10% over the past three years.
Among competing stocks Nike (NKE) increased by 0.1%. Adidas (ADDYY) was not active yet. Skechers (SKX) fell 0.5% and Lululemon Athletica (LULU) climbed 0.8%. The Dow Jones component Nike is in a buying zone while the Lululemon share is just below a proper listing.
Analysts careful on under armor Stock
Wedbush Securities analyst Christopher Svezia assessed under Armor stock as neutral with a 20 goal profit in income, but "It seems there is a meaningful hill to climb to restore brand heat in North America, especially given consolidation in the retail market towards much stronger peers than 2-3 years ago (Nike, adidas, Puma, Vans, Champion and more), Svezia said in a research note. "Valuation also seems to be more than just at the current level, while the company is only in the early stages of a round. "
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