Under Armour Shares Up 23% After Results Top Street, Strong Outlook

(RTTNews) - Shares of Under Armour Inc. (UAA) is currently trading up 23% on Tuesday morning after the sports-apparel company's third quarter results topped Wall Street estimates and it also raised profit outlook for the full year.

Baltimore, Maryland-based Under Armour's third quarter profit rose to $75.3 million or $0.17 per share from $54.2 million or $0.12 per share last year.

Adjusted earnings for the quarter were $112 million or $0.25 per share. Analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts estimates' typically exclude one-time items.

The company's revenues rose 2% to $1.44 billion from $1.41 billion last year. Analysts had expected revenues of $1.42 billion for the quarter.

"Our third quarter results demonstrate that our multi-year transformation is on track," said CEO Kevin Plank. "As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences."

North America revenues decreased 2% to $1.1 billion and the international business increased 15% to $351 million, representing 24 percent of total revenue. Its strongest geographical segment was Latin America, followed by Europe, the Middle East and Africa and Asia-Pacific.

Gross margin, or gross profit as a percentage of sales, increased 10 basis points to 46.1%.

Under Armour raised its adjusted earnings guidance for 2018 to $0.19 to $0.22 per share from previous outlook of $0.16 to $0.19 per share.

Revenue for the full year is expected to increase about 3 to 4 percent reflecting a low single-digit decline in North America and international growth of about 25 percent.

Analysts currently expect earnings of $0.17 per share on revenue growth of 4.0 percent to $5.18 billion for the year.

UAA is currently trading at $22.43, up $4.24 or 23.31%, on the NYSE.