Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
While earnings season is a particularly treacherous time of the year for individual equities, they do give us more information on a company, which is always welcome. Every 3 months, we see if old leaders can continue and where new leaders may emerge from. One benefit of an earnings season during a period of market weakness is stocks that would sometimes “gap and go”, fall back to support giving a much more attractive entry point – either for those who have never had a position or sold much/all of their stake going into the bipolar reaction of an earnings release.
Under Armour (UA) is one of the names that has impressed in the early going. It reported Friday morning, surged quite nicely but is giving some of that move back today. That said it lowered full year revenue guidance early in the year, so it’s one of those names ‘cheating’ a bit, by lowering the bar and then beating that figure. Now it has raised guidance back a bit. Full report can be found here.
Via AP:
- Under Armour’s first-quarter net income rose 22 percent as new products resonated with customers and boosted revenue across all segments. The athletic and outdoor clothing maker lifted its full-year revenue and operating income forecasts as well Friday because of the big first quarter.
- Under Armour earned $14.7 million, or 28 cents per share, compared with $12.1 million, or 23 cents per share, in the prior-year period. That tops the 24 cents per share that analysts polled by FactSet predicted.
- Revenue for the three months ended March 31 climbed 23 percent to $384.3 million, also beating Wall Street’s $378.2 million estimate.
- Clothing sales increased 23 percent in the quarter, thanks in part to new products like ColdBlack and Armour Bra. Sales were strong across men’s, women’s and youth clothing, the company said.
- Direct-to-consumer sales — which made up 25 percent of the quarter’s total revenue — rose 49 percent. Footwear revenue climbed 24 percent mostly because of new 2012 running styles and strong sales of baseball cleats. Accessories revenue increased 26 percent.
- Under Armour said that it now anticipates 2012 revenue of $1.78 billion to $1.88 billion, which is a 21 percent to 22 percent increase over the prior year’s results. The company previously predicted revenue would be at the low end of its 20 percent to 25 percent long-term growth target.
- The company expects operating income of $203 million to $205 million, a 25 percent to 26 percent rise from a year ago. Its prior guidance was for operating income to come in at the higher end of its 20 percent to 25 percent long-term forecast.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
