The first quarter of 2021 for Under Armour Inc. (UAA) was marked by record profitability. Under Armour executives and Wall Street analysts took this as an opportunity to improve their forecasts.
Wall Street expected Under Armor to report earnings of $0.03 per share, while Under Armor came in at $0.16. A 32 % increase in sales over the previous year led to $1.3 billion in sales. Compared to the United States, the growth rate on the international market was approximately 60% YoY.
Investment firms immediately raised their forecasts for Under Armour Inc. (UAA) after reviewing the strong report. As a result, Atlantic Equities upgraded its rating to “neutral” and raised its target price to $24. According to Under Armor’s thesis, the company is showing steady signs of improvement.
Barclays Capital’s analysts have upgraded the stock to “above market” and raised its target price to $ 34. According to the company, Under Armour is doing well with inventory management and increasing sales of high-value, high-margin products. UBS experts have raised Under Armor’s target price to $ 36 based on a similar thesis.
In addition, Under Armour executives anticipated a better year ahead. For example, sales are expected to grow by a slight double-digit percentage rather than a single-digit amount. Operating income will be in the range of $105 million to $115 million, representing a gross profit of over 49 %. While frequent losses are still expected for the year, it is estimated that these losses will be around $0.02 – $0.04 per share, versus $0.18 – $0.22 previously forecast. In addition to earnings-adjusted for the year, adjusted earnings range from $ 0.28 to $ 0.3 per share.
Under Armour Inc. (UAA) shares are up 35.06% year-to-date (YTD) and have moved down -5.23% or -$1.28 in the last trading session. However, the stock’s trailing 12-month performance is nearly 132.36% higher. By comparison, the stock is up 35.06% YTD and 11.65% over the trailing 3-month period. The shorter duration shows its week performance at -4.05% and its month performance at 0.83%.