Under Armour, Inc. (NYSE: UA)
On Wednesday before the market opened Under Armour, the athletic apparel maker, reported fourth quarter and fiscal 2015 financials that showed double-digit revenue and income growth and exceeded analyst’s consensus forecast across the board. Investors pilled into the stock driving the price up $15.49, by far the biggest daily gain since the IPO more than 10 years ago.
Under Armour’s fourth quarter revenue increased 31% year over year to $1.17 billion and beat consensus estimate of $1.12 billion. For the quarter, net income climbed 20.4% to 48 cents per share, also beating consensus estimate of 46 cents per share. Fiscal year 2105 revenue climbed 28% year over year to $3.96 billion versus consensus of $3.91 billion, and net income grew 11% to $1.05 per share including $0.10 of dilution from acquisitions during the fiscal year. Looking to 2106, UA raised revenue forecast to $4.95 billion, up from prior estimate of $4.91 billion. The company also increased its forecast of operating income to $503 million for the full year. Yahoo Finance
Under Armour CEO Comments
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, “Our core business remains incredibly strong and our 31% net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our Brand. We delivered our 25th consecutive quarter of more than 20% net revenues growth in our largest product category of apparel. Moreover, we continued to diversify our product offering and geographic reach, driving significant market share gains in key strategic areas like basketball footwear, while better meeting the needs of the global athlete with investments in our global Brand House stores and e-commerce sites helping drive 70% growth in international. With our continued investments across people, systems, and digital, we are confident in our ability to build upon this tremendous momentum, reinforcing our belief that we are just getting started in becoming the next great global brand.” PR Newswire
UA Technical Analysis
Before the earnings report, UA was down 35% from all-time highs of $105.89 reached last September. The stock was down 15% so far in 2106, but after Thursday’s monstrous move, the stock is now up 4.3% year to date. UA gapped up more than $10 to open at $79.49, traded up all day after the expected morning profit taking, and closed strong, reaching the high of the day in the last 30 minutes of trading. UA established several intra-day levels that could be tradable during the next few days. Support levels are near $83.50, $82.00, $81.00, $79.00 and the low of the day at $78.11. Below that a very bearish market could get UA to $74.48 and the gap fill at $70.26. On continued bullishness, resistance levels are near $84.92, $85.48, and the 200-day moving average near $87.94. Next level is a November gap fill at $89.32.
Under Armour Company Profile
Under Armour, Inc. is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s moisture-wicking fabrications are engineered in a range of designs and styles for wear in nearly every climate to provide an alternative to traditional products. The Company’s operating segments include North America, consisting of the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific; Latin America, and MapMyFitness. The Company also offers digital fitness platform licenses and subscriptions, along with digital advertising through its MapMyFitness business. Its apparel offers three gearlines, including HEATGEAR, COLDGEAR and ALLSEASONGEAR. Its footwear offerings include football, baseball, lacrosse, softball and soccer cleats, slides and performance training, running, basketball and outdoor footwear. Its accessories primarily include the sale of headwear, bags and gloves. Google Finance
