Under Armour (UAA) earnings: will we see results from restructuring?

1:18 pm ET, 29 Oct 2018

Under Armour, Inc. (UAA) shares are trading at $18.95, up 5.40%. The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving Under Armour stock price? What's UAA stock price forecast?

Under Armour develops, markets, and distributes branded apparel, footwear, and accessories globally. The stock has appreciated 10% in the past year. The company recently announced a restructuring plan to improve its overall business performance.

Investors are showing interest in the stock because of the company’s strong international growth. On the other hand, some bearish investors are worried about the company’s growth prospects after announcing a recent layoff. Last quarter’s revenue rose 7.3% to $1.17 billion and earnings per share came at -$0.08 compared to -$0.03 for the same period last year.

Third-quarter results will be released before market opens on October 30, 2018. Analysts expect the company to earn 12 cents per share on revenue of $1.42 billion. The company beat analysts’ estimates in the previous three quarters.

What is the sentiment towards the UAA stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, Under Armour, Inc. (UAA) returned -11.33%.

Under Armour, Inc. (UAA) forward P/E ratio is 56.58, and it’s high compared to its industry peers’ P/E ratios.

Under Armour, Inc. (UAA) short share of float is 23.83%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Under Armour, Inc. (UAA) average analyst price target ($19.03) is 4.33% above its current price ($18.24).

For the latest price and information on Under Armour, Inc., please visit Finstead and search for "UAA price" or "UAA news".

Skechers (SKX) earnings preview: expect double-digit sales growth

11:09 am ET, 17 Jul 2018

Skechers U.S.A., Inc. (SKX)  is expected to report earnings on July 19 after market close. The report will be for the fiscal quarter ending June 2018.  Shares are trading at 31.29, up 1.07%.

What are SKX earnings expectations?  What news will the market be watching out for?  

Some investors believe Skechers is undervalued because it deploys a different distribution model relative to its competitors such as Nike, which is primarily focused on e-commerce.  The company realized there is a more effective and profitable model to sell its shoes to consumers--by deploying a traditional direct-to-consumer brick and mortar model.

The company has just over 650 stores, which is up from 584 stores at the end of last year. In addition, Skechers is planning on opening an additional 60 to 75 units by the end of the year. With 133 to 148 new locations this year, Skechers top line should benefit from the sales generated by new stores.

Looking at Nike and Under Armour, each company is trying to drive direct sales in different ways. Nike is investing in its eCommerce business. Nike Direct reported total sales in the last twelve months, of over $10 billion, and grew at an annual basis of 12%. Under Armour is investing heavily in growing its direct to consumer business as well. The company increased its Brand House locations by more than 40% since last year, and its Factory House locations by 15%.

The key difference between the three companies is while Nike and Under Armour get about 30% of their sales from direct to consumer, Skechers gets less than 23%. The reason direct to consumer has become so popular is the business cuts out the middleman, thus increasing the company’s gross margin.

In the upcoming earnings, investors will be focused on the company's growth and profitability.  Skechers' adjusted revenue growth was 21% historically, and for the upcoming quarter sales is expected to grow 10%.   

Skechers gross margin already leads its peers at 46.6%, whereas Nike comes in at 44.6%, and Under Armour sits at 44.2%. However, Skechers' Retail (or direct business) carries a gross margin of 57% as of last quarter.

Skechers has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 6 cents ($.38 actuals vs. $.44 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 16 cents ($.59 actuals vs. $.43 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($.21 actuals vs. $.13 forecast) in FQ4’17;
  • Missed analyst EPS estimates by 6 cents ($.68 actuals vs. $.74 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 5% year-over-year to $.40, while revenue is expected to grow 10% year-over-year to $1.13 billion. 

 

Over the last month, Skechers U.S.A., Inc. (SKX) returned +8.57%. 

Skechers U.S.A., Inc. (SKX) average analyst price target ($42.33) is 35.28% above its current price ($31.29).

For the latest price and information on Skechers U.S.A., Inc., please visit Finstead and search for "SKX price" or "SKX news".

Nike (NKE) earnings: will inventory levels send the stock price down?

1:25 pm ET, 25 Jun 2018

Nike, Inc. (NKE) is reporting earnings on June 28 after market close. The report will be for the fiscal quarter ending May 2018.  The shares are now trading at $72.63, down -1.08%.  What are the NKE earnings expectations?  What news will the market be watching out for?

One of the things that investors are watching out for is Nike's inventory level.  Nike seems to be doing fine on this point; however, what concerns some investors is the fact that the inventory is rising faster than the overall sales, particularly in the footwear business.  Some other companies,  Sketchers (SKX), have inventory levels that are increasing much more slowly than the sales.  

Also, Nike's share of inventory as a percentage of overall revenue is growing.  

Nike has the history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 11 cents ($.60 actuals vs. $.49 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 9 cents ($.57 actuals vs. $.48 forecast) in FQ1’18;
  • Beat analyst EPS estimates by 7 cents ($.46 actuals vs. $.39 forecast) in FQ2’18;
  • Beat analyst EPS estimates by 16 cents ($.68 actuals vs. $.52 forecast) in FQ3’18.

For FQ4’18, EPS is expected to grow by 7% year-over-year to $.64, while revenue is expected to grow 8% year-over-year to $9.39 billion.  

Nike, Inc. (NKE) forward P/E ratio is 27.77, and it’s high compared to its industry peers’ P/E ratios.

Nike, Inc. (NKE) average analyst price target ($71.73) is -1.24% below its current price ($72.63).

For the latest price and information on Nike, Inc., please visit Finstead and search for "NKE price" or "NKE news".

Under Armour (UAA) Stock Price Dropped. Is Now A Good Time To Buy?

1:22 pm ET, 02 Apr 2018

The shares of Under Armour (NASDAQ: UAA) saw a dip of about 2% today. The dip occurred because of the MyFitnessPal data security breach.

The MyFitnessPal app was acquired by Under Armour in February 2015 and tracks health and nutrition data for its users.  The breach involves the exposure of personal data for 150 million app users

The hackers accessed app users’ names, email addresses, and passwords.  But the company assured that the data breach had no impact on the payment card information.  The hackers also didn’t gain access the Social Security numbers or driver's license numbers. 

The replacements of credit and debit cards are not needed because identity thefts did not occur (in contrast to Equifax).

Following the incident, Under Armour asked its MyFitnessPal app users to change their passwords.

Allegations were made against Under Armour for publishing misleading business information to its investors. This issue is being investigated by Rosen Law firm, which is currently probing the potential securities claims for the company's shareholders.

In order to recover the losses incurred, the law firm is planning to file a class action lawsuit. It is the top law firm involved in handling securities class actions, as well as shareholder derivative litigation.

Given all of this, what is the upside for the UAA stock price? Per Finstead Research, Under Armour has an average price target of almost $15, which is a little less than its current stock price.

 

 Under Armour has the highest valuation among its peers based on the Forward P/E ratio.


Nike (NKE): Is It Worth Buying Now?

4:53 pm ET, 22 Mar 2018

Post earnings, Nike (NYSE: NKE) stock popped on good sales results.  

Mark Parker, the CEO, sees a significant reversal of a decline in North America.

In the past two years, the demand for Nike sneakers in North America had waned, which led to gross margin fall for a ninth straight quarter.  This indicated that Nike continued to compete on price with its rivals.

Nike's executive level turbulence is another worry for investors. Last week Nike witnessed its Brand President Trevor Edwards and VP Jayme Martin's resignation after a scandal related to the code of conduct. With the availability of very few details, it is not possible to tell precisely the course of events that caused this. 

Nike's CEO Mark Parker is committed to sticking to his position beyond 2020, which is a positive point for the investors.

Nike is also facing some business challenges stemming from increased selling and administrative expenses, and competitive threats. Nike's rivals such as Adidas and Under Armour (UAA) present a stiff competition.

According to Finstead Research, Nike’s average price target is $68 (roughly the same as the price after-hours today).

Nike’s valuation is fairly high with respect to its peers. It only lags behind CROX.


If you’re a trader, maybe you should wait until you're able to buy a dip again. 

Under Armour, Inc. (UAA) Stock Guide

Updated at: 8:08 pm ET, 02 Sep 2020

Before we start: if you're looking for UAA stock price, you can quickly find it out by visiting Finny and typing "UAA quote". If you're looking for a quick scoop on UAA stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "UAA". You'll get all this info in one place. Or you can just type "UAA news" to get the latest stock news.

Looking to buy or sell Under Armour, Inc. (UAA)? Interested in getting the full scoop on UAA, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this UAA stock guide, we'll address key questions about UAA, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are UAA earnings?
2. When is UAA earnings date?
3. What is UAA stock forecast (i.e., prediction)?
4. UAA buy or sell? What is UAA Finny Score?
5. What are the reasons to buy UAA? Why should I buy UAA stock?
6. What are the reasons to sell UAA? Why should I sell UAA stock?
7. What are UAA key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are UAA earnings?

UAA trailing 12-month earnings per share (EPS) is -$1.51.

2. When is UAA earnings date?

UAA earnings date is November 02, 2020.

Analyst Predictions

3. What is UAA stock forecast (i.e., prediction)?

Based on UAA analyst price targets, UAA stock forecast is $10.25 (for a year from now). That means the average analyst price target for UAA stock is $10.25. The prediction is based on 33 analyst estimates.

The low price target for UAA is $5.00, while the high price target is $16.00.

UAA analyst rating is Hold.

Analysis

4. UAA buy or sell? What is UAA Finny Score?

#{finnyScore:22}Our quantitative analysis shows 2 reasons to buy and 7 reasons to sell UAA, resulting in Finny Score of 22.

5. What are the reasons to buy UAA? Why should I buy UAA stock?

Here are the reasons to buy UAA stock:

  • Under Armour's strategy to reach digitally connected athletes should offer long-term competitive advantages, including consumer insights on marketing and new product development.
  • As Under Armour expands globally, it has been able to secure sponsorships with marquee names and teams. Only a few sporting goods companies are large enough to compete.
  • Under Armour has developed credibility through innovative marketing, driving demand for products and technologies that didn't exist even just a few years ago, and increasing average prices.
  • The company has also entered into deal with rising athletes including basketball star Stephen Curry and golfer Jordan Spieth, which will help in enhancing brand recognition and get an edge over its competitors. Taken together, these strategies will not only help in augmenting market share but also provide a competitive platform in the global sportswear retail market.
  • With increasing consciousness about fitness among people, sports apparel makers are entering into the business of fitness gadgets and other tracking platforms to attract customers. The acquisition of MapMyFitness in December 2013 for $150 million by Under Armour was a step forward in the same direction. MapMyFitness, which has flagship consumer brands such as MapMyRun, MapMyRide, and MapMyWalk, offers members to track over 600 kinds of workouts on their mobile devices.
  • In the past few years Under Armour has been trying to boost its DTC business (offering merchandise via network of brand and factory house stores and its website and catalogs) through store expansion initiatives and enhancement of its eCommerce platform. This strategy has enhanced DTC’s contribution to total revenues, which has reached 25% in 2016 from 6% in 2005. In fourth-quarter 2017, DTC’s contribution to total revenues increased within 14-35% of the global revenues.
  • UAA PEG ratio (P/E adjusted for growth) is 1.69, which is low compared to its industry peers’ PEG ratios. See UAA PEG chart.
  • UAA cash to debt ratio is 0.47, higher than the average industry (0.15) and sector (0.13) cash to debt ratio. See UAA cash to debt chart.

6. What are the reasons to sell UAA? Why should I sell UAA stock?

Let's look at the reasons to sell UAA stock (i.e., the bear case):

  • Plans to more heavily invest in footwear and Connected Fitness could make it more difficult to increase gross and operating margins over the near term.
  • Under Armour is increasing its retail ownership and wholesale door intensity. Although the firm is roughly one tenth the size of Nike, it already has nearly half the number of North American wholesale doors.
  • Although it is investing in new markets and verticals, Under Armour is still dependent on its home market and core apparel offerings. By increasing its own direct-to-consumer distribution, it risks alienating core retail partners.
  • Under Armour’s earnings missed the Zacks Consensus Estimate after beating in the preceding three quarters. It reported break-even adjusted earnings, missing the consensus mark of 1 cent. Notably, the bottom line was largely impacted by continuous decline in North America sales.
  • Under Armour has been grappling with higher interest expenses. In fourth- quarter 2017, the company’s interest and other expenses increased to nearly $12 million in comparison with $10 million in the prior- year quarter. Further, it anticipates interest and other expenses to rise roughly $45 million in 2018 from $38.2 million last year.
  • Considering the price-to-earnings (P/E) ratio, Under Armour looks pretty overvalued when compared to the industry as well as the S&P 500.
  • UAA quarterly revenue growth was -40.60%, lower than the industry and sector average revenue growth (1.75% and 0.78%, respectively). See UAA revenue growth chart.
  • UAA profitability is declining. The YoY profit margin change was -5.07 percentage points. See UAA profitability chart.
  • UAA forward P/E ratio is 102.50, which is high compared to its industry peers’ P/E ratios. See UAA forward P/E ratio chart.
  • UAA average analyst price target ($10.25) is below its current price ($10.39). See UAA price target chart.
  • UAA short share of float is 11.84%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See UAA short share of float chart.
  • UAA short interest (days to cover the shorts) ratio is 2.3. The stock garners more short interest than the average industry, sector or S&P 500 stock. See UAA short interest ratio chart.
  • UAA Enterprise Value/EBITDA multiple is 37.26, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See UAA Enterprise Value/EBITDA chart.

Key Stats

7. What are UAA key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for UAA:

Metrics UAA
Price $11.97
Average Price Target / Upside $10.39 / -13.20%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Apparel Manufacturing
Sector Consumer Cyclical
Number of Employees 15,000
Market Cap $4.43B
Forward P/E Ratio 102.50
Price/Book Ratio 0.98
Revenue (TTM) $4.51B
YoY Quarterly Revenue Growth -40.60%
Profit Margin -15.21%

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