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Under Armour (UAA) to Post Q3 Earnings: Here's What to Expect
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Under Armour, Inc. (UAA - Free Report) is likely to register a year-over-year decline in the top line when it reports third-quarter fiscal 2024 earnings on Feb 8, before market open. The Zacks Consensus Estimate for revenues is pegged at $1,507 million, indicating a dip of 4.7% from the prior-year period’s reported figure.
The bottom line of this developer, marketer and distributor of apparel, footwear and accessories is expected to decrease from the prior-year quarter’s actual. The consensus estimate for fiscal third-quarter earnings of 11 cents per share has been unchanged over the past 30 days. The figure suggests a decline of 31.3% from the earnings of 16 cents reported in the year-ago period.
This Baltimore, MD-based player has a trailing four-quarter earnings surprise of 69.7%, on average. In the last reported quarter, Under Armour’s bottom line outperformed the Zacks Consensus Estimate by 14.3%.
Under Armour, Inc. Price, Consensus and EPS Surprise
Under Armour has been encountering a challenging macroeconomic landscape. Continued inflation, volatile consumer behavior, and the effects of wholesale channel de-stocking, resulting in soft future order bookings, are anticipated to have acted as deterrents. The company has been witnessing top-line pressures, mainly driven by softness in its North America business.
On its last reported quarter’s earnings call, Under Armour expected third-quarter revenues to decline year over year at a mid-single-digit rate mainly due to reduced wholesale orders in North America, partially offset by continued growth in the direct-to-consumer (DTC) business. The Zacks Consensus Estimate for the company’s DTC channel revenues is pegged at $747 million, implying a year-over-year increase of 4.5%.
The company anticipates the third-quarter gross margin to be stable or experience a slight increase year over year, attributed to planned inventory management actions. Apart from this, Under Armour has been witnessing increased selling, general and administrative costs. Management expects the third-quarter operating income between $65 million and $75 million, with earnings per share of 9-11 cents.
However, Under Armour has been benefiting from its strategic initiatives, which are aimed at refining its product development, distribution and operational processes. These efforts have been helping the company improve its agility, enhance customer experience and expand its global footprint.
Focus on marketing campaigns and brand partnerships has successfully amplified Under Armour's brand visibility and appeal. Continued investments in product innovation, especially in the footwear segment, has been enabling the company to capture additional market share and meet evolving consumer preferences. These upsides bode well for the quarter under review.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Under Armour this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Under Armour has an Earnings ESP of +6.62% and a Zacks Rank of 2.
More Stocks With Favorable Combination
Here are three other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LULU’s quarterly earnings per share of $4.99 suggests an increase of 13.4% from the year-ago quarter’s reported level.
lululemon has a trailing four-quarter earnings surprise of 9.2%, on average. The consensus estimate for LULU’s quarterly revenues is pegged at $3.19 billion, indicating a rise of 15% from the figure reported in the prior-year quarter.
The Gap (GPS - Free Report) has an Earnings ESP of +25.37% and currently flaunts a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 19 cents suggests an increase of 125.3% from the year-ago quarter’s reported number.
The Gap’s top line is expected to have declined from the prior-year quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $4.21 billion, suggesting a decline of 0.7% from the prior-year quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 137.9%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +3.14% and sports a Zacks Rank of 1 at present. The company is slated to witness top-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for ANF’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 18.7% from the figure reported in the prior-year quarter.
The consensus estimate for Abercrombie & Fitch’s quarterly earnings has moved up 32 cents over the past 30 days to $2.71 per share, suggesting growth of 234.6% from the year-ago quarter’s reported number. ANF delivered an earnings surprise of 713%, on average, in the trailing four quarters.
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Under Armour (UAA) to Post Q3 Earnings: Here's What to Expect
Under Armour, Inc. (UAA - Free Report) is likely to register a year-over-year decline in the top line when it reports third-quarter fiscal 2024 earnings on Feb 8, before market open. The Zacks Consensus Estimate for revenues is pegged at $1,507 million, indicating a dip of 4.7% from the prior-year period’s reported figure.
The bottom line of this developer, marketer and distributor of apparel, footwear and accessories is expected to decrease from the prior-year quarter’s actual. The consensus estimate for fiscal third-quarter earnings of 11 cents per share has been unchanged over the past 30 days. The figure suggests a decline of 31.3% from the earnings of 16 cents reported in the year-ago period.
This Baltimore, MD-based player has a trailing four-quarter earnings surprise of 69.7%, on average. In the last reported quarter, Under Armour’s bottom line outperformed the Zacks Consensus Estimate by 14.3%.
Under Armour, Inc. Price, Consensus and EPS Surprise
Under Armour, Inc. price-consensus-eps-surprise-chart | Under Armour, Inc. Quote
Key Things to Note
Under Armour has been encountering a challenging macroeconomic landscape. Continued inflation, volatile consumer behavior, and the effects of wholesale channel de-stocking, resulting in soft future order bookings, are anticipated to have acted as deterrents. The company has been witnessing top-line pressures, mainly driven by softness in its North America business.
On its last reported quarter’s earnings call, Under Armour expected third-quarter revenues to decline year over year at a mid-single-digit rate mainly due to reduced wholesale orders in North America, partially offset by continued growth in the direct-to-consumer (DTC) business. The Zacks Consensus Estimate for the company’s DTC channel revenues is pegged at $747 million, implying a year-over-year increase of 4.5%.
The company anticipates the third-quarter gross margin to be stable or experience a slight increase year over year, attributed to planned inventory management actions. Apart from this, Under Armour has been witnessing increased selling, general and administrative costs. Management expects the third-quarter operating income between $65 million and $75 million, with earnings per share of 9-11 cents.
However, Under Armour has been benefiting from its strategic initiatives, which are aimed at refining its product development, distribution and operational processes. These efforts have been helping the company improve its agility, enhance customer experience and expand its global footprint.
Focus on marketing campaigns and brand partnerships has successfully amplified Under Armour's brand visibility and appeal. Continued investments in product innovation, especially in the footwear segment, has been enabling the company to capture additional market share and meet evolving consumer preferences. These upsides bode well for the quarter under review.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Under Armour this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Under Armour has an Earnings ESP of +6.62% and a Zacks Rank of 2.
More Stocks With Favorable Combination
Here are three other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for LULU’s quarterly earnings per share of $4.99 suggests an increase of 13.4% from the year-ago quarter’s reported level.
You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon has a trailing four-quarter earnings surprise of 9.2%, on average. The consensus estimate for LULU’s quarterly revenues is pegged at $3.19 billion, indicating a rise of 15% from the figure reported in the prior-year quarter.
The Gap (GPS - Free Report) has an Earnings ESP of +25.37% and currently flaunts a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 19 cents suggests an increase of 125.3% from the year-ago quarter’s reported number.
The Gap’s top line is expected to have declined from the prior-year quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $4.21 billion, suggesting a decline of 0.7% from the prior-year quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 137.9%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +3.14% and sports a Zacks Rank of 1 at present. The company is slated to witness top-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for ANF’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 18.7% from the figure reported in the prior-year quarter.
The consensus estimate for Abercrombie & Fitch’s quarterly earnings has moved up 32 cents over the past 30 days to $2.71 per share, suggesting growth of 234.6% from the year-ago quarter’s reported number. ANF delivered an earnings surprise of 713%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.