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Under Armour (UAA) Posts Narrower-than-Expected Q2 Loss

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Under Armour, Inc. (UAA - Free Report) a leading designer, marketer, and distributor of athletic footwear, apparel, and accessories, released second-quarter 2017 results, wherein it posted a loss of 3 cents per share, narrower than the Zacks Consensus Estimate loss of 6 cents.

For 2017, the company expects its adjusted earnings in the band of 37–40 cents per share. The Zacks Consensus Estimate for 2017 is currently pegged higher at 42 cents. On a reported basis, earnings for the year are projected in the range of 18–21 cents.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has remained stable in the last 30 days. Further, Under Armour’s performance in the trailing four quarters (excluding the quarter under review) gives a positive picture, with an average beat of 20.8%.

Under Armour, Inc. Price, Consensus and EPS Surprise

Under Armour, Inc. Price, Consensus and EPS Surprise | Under Armour, Inc. Quote

Revenues: Under Armour generated net sales of $1,088.2 million that increased 9% year over year and also came ahead of the Zacks Consensus Estimate of $1,075 million. On a currency-neutral basis, revenues were up 8%.

For 2017, the company anticipates revenues to increase in the range of 9–11%, compared with the previous guided range of 11–12%. This represents moderation in its North American business.

Other Developments: Management has announced a restructuring plan in order to organize its financial resources more efficiently. This will better cater to the evolving demands of the changing consumer environment. In sync with this, Under Armour anticipates to incur total estimated pre-tax restructuring and related charges of roughly $110-130 million in the full year.

Zacks Rank: Currently, Under Armour carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Despite lower-than-expected earnings, Under Armour’s shares are down nearly 7.8% during the pre-market trading hours, owing to lower sales guidance.

Check back later for our full write up on Under Armour’s earnings report!

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