Why Under Armour Inc (UAA) stock should still be avoided?
Under Armour (UAA) is expected to deliver a year-over-year ... a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Does the Under Armour stock split make UA a buy?
Does Under Armour's 5-Year Plan Make the Stock a Buy? A year ago, the athletic apparel company laid out a clear five-year plan, but it didn't exactly sprint out of the starting blocks.
Why the Under Armour brand is in crisis?
Under Armour is a brand in crisis. The athletic apparel company reported better-than-expected earnings on Monday, but its stock plunged in the wake of news about a federal accounting probe. What’s...
Is Under Armour in trouble?
Under Armour still has a North America problem. The athletic apparel retailer’s mixed earnings results on Tuesday called attention to the fact that the brand continues to struggle to win over shoppers on its home turf. North American sales are expected to be down slightly in 2019, rather than flat as its prior forecast projected.
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Why did Under Armour stock fall?
The stock has actually been impacted since May 6 when Under Armour reported earnings that did not meet analyst expectations. The company reported a net loss of $60 million in the quarter, with an adjusted loss of $3 million. Revenue was up 3 percent over the same period last year to $1.3 billion.
Is Under Armour stock a good buy?
Under Armour, Inc. may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of UAA, demonstrate its potential to outperform the market. It currently has a Growth Score of A.
Is Under Armour out of style?
The company has held the No. 1 spot in the “brands no longer worn” category specific to teenage upper-income males for the last four seasons. Also, Under Armour's rankings in apparel in footwear fell significantly, with apparel dropping to No. 20 from No.
Who owns the most Under Armour stock?
Kevin PlankKevin Plank, Founder, and CEO His academic qualifications include a Master of Business Administration from the University of Maryland. Plank is the largest Under Armour shareholder, with 33.8 million Class C shares owned indirectly through a series of trusts.
Is Under Armour overvalued?
Overvalued. Analysts are currently looking for Under Armour to earn only $0.33 a share in 2019, meaning shares now trade at over 46 times one-year forward earnings estimates. That's nearly double Nike's valuation at 24 times.
Is Under Armour undervalued?
At this time, the company appears to be undervalued. Our model measures the value of Under Armour from inspecting the company fundamentals such as Shares Outstanding of 253.02 M, return on equity of 19.13 %, and Operating Margin of 9.23 % as well as reviewing its technical indicators and Probability Of Bankruptcy.
Is Under Armour in trouble?
Under Armour's stock plunges as it posts quarterly loss and misses revenue projections amid ongoing supply chain, COVID challenges. Under Armour's stock plunged on Friday's news that the company posted a quarterly loss and missed revenue projections amid continuing supply chain and pandemic-related challenges.
Will Under Armour stock recover?
Under Armour / UAA Analysts estimate that it will earn 79 cents a share in calendar 2022 after last year's 77 cents, on a 6% increase in sales, to $6 billion. The consensus calls for 2022 sales to rise about 9% and 22% at Nike and Lululemon, respectively.
Has Under Armour lost its cool?
A recent New York Times (NYT) article has addressed this seemingly new, but indeed long-time-coming story about the brand. Has Under Armour lost its edge? Yes. But, more importantly, Under Armour has lost its cool.
What company owns Under Armour?
As Under Armour founder and chairmen Kevin Plank unveiled a new brand message – “The Only Way is Through” – SEC filings revealed that in the last quarter a hedge fund made a significant bet on Under Armour's future performance. Lone Pine Capital LLC purchased a nearly 7% stake in the company.
Who just bought Under Armour?
US sportswear brand Under Armour has announced it will sell the MyFitnessPal platform to private equity firm Francisco Partners for US$345 million.
Who bought Under Armour?
Francisco PartnersGlobal fitness giant Under Armour announced this morning that it will be selling MyFitnessPal to investment firm Francisco Partners for $345 million, five and a half years after acquiring it for $475 million.
How much does Under Armour make in 2019?
Analysts are currently looking for Under Armour to earn only $0.33 a share in 2019, meaning shares now trade at over 46 times one-year forward earnings estimates. That's nearly double Nike's valuation at 24 times.
How much will Nike earnings grow in 2019?
Nike is expected to grow earnings by almost 17 percent in 2018 and 2019, while Under Armour has a much harder path because analysts are estimating earnings to increase by about 15 percent in 2018 and then jump by almost 47 percent in 2019.
What happened
The stock of Under Armour ( UAA -2.36% ) ( UA -1.52% ) lost ground to the market on Friday, dropping 9% by 12:30 p.m. ET today, compared to a 0.3% decline in the S&P 500. The decline was sparked by news that the retailer is struggling with supply chain challenges.
So what
Revenue for the holiday period that ended in late December was up 8% after accounting for currency exchange swings. That result was just above most investors' hopes.
Now what
Instead of that good news, investors focused on management's cautious outlook for the next several months. For the current quarter, sales will rise in the mid-single-digit range, executives said.
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Referenced Symbols
Under Armour Inc. UAA, -0.05% UA, +0.74% stock fell nearly 3% in Wednesday trading after the athletic company announced an updated restructuring plan that includes higher charges.
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About the Author
Tonya Garcia is a MarketWatch reporter covering retail and consumer-oriented companies. You can follow her on Twitter @tgarcianyc. She is based in New York.
Shares of the sportswear maker tumbled as it revealed the impact of the coronavirus on its first quarter
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Under Armour ( NYSE:UA) ( NYSE:UAA) were falling today after the sportswear maker missed the mark in its first-quarter earnings report. Under Armour was already struggling before the COVID-19 pandemic hit, and the virus has only made its hoped-for turnaround more difficult.
So what
Overall revenue in the quarter fell 23% to $930 million with 15 percentage points of the decline due to COVID-19, the company estimated. That result missed analyst expectations at $949 million.
Now what
Due to the impact of the pandemic, Under Armour will reduce 2020 operating expenses by $325 million and capital expenditures by $100 million.
