Back to top

Image: Bigstock

Under Armour (UAA) International Revenue Performance Explored

Read MoreHide Full Article

Did you analyze how Under Armour (UAA - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this sports apparel company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of UAA's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter amounted to $1.33 billion, showing decrease of 4.8%. We will now explore the breakdown of UAA's overseas revenue to assess the impact of its international operations.

Unveiling Trends in UAA's International Revenues

Of the total revenue, $50.24 million came from Latin America during the last fiscal quarter, accounting for 3.8%. This represented a surprise of +2.83% as analysts had expected the region to contribute $48.86 million to the total revenue. In comparison, the region contributed $69.83 million, or 4.7%, and $41.81 million, or 3%, to total revenue in the previous and year-ago quarters, respectively.

EMEA accounted for 21.3% of the company's total revenue during the quarter, translating to $284.13 million. Revenues from this region represented a surprise of +5.47%, with Wall Street analysts collectively expecting $269.39 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $284.05 million (19.1%) and $259.51 million (18.6%) to the total revenue, respectively.

Asia-Pacific generated $226.7 million in revenues for the company in the last quarter, constituting 17.0% of the total. This represented a surprise of -2.62% compared to the $232.81 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $212.02 million (14.3%), and in the year-ago quarter, it contributed $224.92 million (16.1%) to the total revenue.

Projected Revenues in Foreign Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Under Armour will report a total revenue of $1.14 billion, which reflects a decline of 13.8% from the same quarter in the previous year. The revenue contributions are expected to be 4.9% from Latin America ($55.7 million), 21% from EMEA ($238 million) and 19.6% from Asia-Pacific ($222.5 million).

For the entire year, the company's total revenue is forecasted to be $5.1 billion, which is a reduction of 10.6% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 4.7% ($237.02 million), EMEA 22% ($1.12 billion) and Asia-Pacific 18.5% ($941.68 million) to the total revenue.

Wrapping Up

Relying on global markets for revenues presents both prospects and challenges for Under Armour. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At the moment, Under Armour has a Zacks Rank #4 (Sell), signifying that it may underperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Under Armour's Recent Stock Price Performance

The stock has witnessed an increase of 0.7% over the past month versus the Zacks S&P 500 composite's an increase of 5.8%. In the same interval, the Zacks Consumer Discretionary sector, to which Under Armour belongs, has registered an increase of 2%. Over the past three months, the company's shares saw a decrease of 19.6%, while the S&P 500 increased by 6.3%. In comparison, the sector experienced a decline of 3.7% during this timeframe.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Under Armour, Inc. (UAA) - free report >>

Published in