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What's Under Armour (UAA) Probability to Beat in Q2 Earnings
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Under Armour, Inc. (UAA - Free Report) is slated to report second-quarter 2018 results on Jul 26. In the trailing four quarters, this designer, marketer and distributor of authentic athletic footwear, apparel, and accessories has outperformed the Zacks Consensus Estimate by an average of 16.5%. Investors are counting on another beat by Under Armour in the to-be-reported quarter. Let’s delve deeper and take a look at the factors that are likely to influence the results.
How Are Estimates Faring?
The Zacks Consensus Estimate for the quarter under review is pegged at a loss of 8 cents compared with a loss of 3 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has been stable in the last 30 days. Analysts polled by Zacks now project revenues of $1,153 million, up approximately 6% from the year-ago quarter.
Let’s delve deeper and find out the factors impacting the results.
Factors Holding Key to NY Times’ Performance
Under Armour’s sustained focus on brand development and expansion of direct-to-consumer (DTC) and technology-based fitness businesses bode well. The company has been trying to boost its DTC business (offering merchandise via the network of brand and factory house stores, and its website and catalogs) through store expansion initiatives and the enhancement of its e-commerce platform.
Management had earlier guided second-quarter revenue growth to be similar to that of the first quarter and expects the bottom line in the range of a loss of 9-10 cents, wider than the year-ago quarter loss of 3 cents, owing to an operating loss of $30 million. Further, SG&A expenses are expected to increase low-double digits in the second quarter.
Sales decline in North America has been also a major concern for investors in the past few quarters. In fact, the company has been reporting sluggish sales from the region since fourth-quarter 2016. Analysts believe that the dismal show may be due to store closures, decreased productivity and demand along with shift in fashion preference.
Though the company generates the major portion of its revenues from the North American region, it intends to expand business operations to other parts of the world to mitigate risks, stemming from the concentration in one geographic region.
In the process, over the years, the company opened its factory and brand stores in Canada and China as well as given franchise licenses in many countries. Moreover, the company is expanding its DTC business in the U.K., Germany and the Netherlands. Further, it has rolled out e-commerce platforms in countries like Mexico, Australia, New Zealand and Chile.
Under Armour, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Under Armour is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Urban Outfitters (URBN - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2.
Foot Locker, Inc. (FL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #2.
DSW Inc. has an Earnings ESP of +2.86% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's Under Armour (UAA) Probability to Beat in Q2 Earnings
Under Armour, Inc. (UAA - Free Report) is slated to report second-quarter 2018 results on Jul 26. In the trailing four quarters, this designer, marketer and distributor of authentic athletic footwear, apparel, and accessories has outperformed the Zacks Consensus Estimate by an average of 16.5%. Investors are counting on another beat by Under Armour in the to-be-reported quarter. Let’s delve deeper and take a look at the factors that are likely to influence the results.
How Are Estimates Faring?
The Zacks Consensus Estimate for the quarter under review is pegged at a loss of 8 cents compared with a loss of 3 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has been stable in the last 30 days. Analysts polled by Zacks now project revenues of $1,153 million, up approximately 6% from the year-ago quarter.
Let’s delve deeper and find out the factors impacting the results.
Factors Holding Key to NY Times’ Performance
Under Armour’s sustained focus on brand development and expansion of direct-to-consumer (DTC) and technology-based fitness businesses bode well. The company has been trying to boost its DTC business (offering merchandise via the network of brand and factory house stores, and its website and catalogs) through store expansion initiatives and the enhancement of its e-commerce platform.
Management had earlier guided second-quarter revenue growth to be similar to that of the first quarter and expects the bottom line in the range of a loss of 9-10 cents, wider than the year-ago quarter loss of 3 cents, owing to an operating loss of $30 million. Further, SG&A expenses are expected to increase low-double digits in the second quarter.
Sales decline in North America has been also a major concern for investors in the past few quarters. In fact, the company has been reporting sluggish sales from the region since fourth-quarter 2016. Analysts believe that the dismal show may be due to store closures, decreased productivity and demand along with shift in fashion preference.
Though the company generates the major portion of its revenues from the North American region, it intends to expand business operations to other parts of the world to mitigate risks, stemming from the concentration in one geographic region.
In the process, over the years, the company opened its factory and brand stores in Canada and China as well as given franchise licenses in many countries. Moreover, the company is expanding its DTC business in the U.K., Germany and the Netherlands. Further, it has rolled out e-commerce platforms in countries like Mexico, Australia, New Zealand and Chile.
Under Armour, Inc. Price, Consensus and EPS Surprise
Under Armour, Inc. Price, Consensus and EPS Surprise | Under Armour, Inc. Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that Under Armour is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Under Armour has a Zacks Rank #1 but an Earnings ESP of -3.08%, makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Urban Outfitters (URBN - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2.
Foot Locker, Inc. (FL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #2.
DSW Inc. has an Earnings ESP of +2.86% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>