A Preview Of Under Armour's Earnings

Under Armour UA releases its next round of earnings this Friday, October 30. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Under Armour reporting earnings of $0.05 per share on sales of $1.13 billion. Under Armour reported a per-share profit of $0.23 when it published results during the same quarter last year. Sales in that period totaled $1.43 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 78.26% decline in the company's earnings. Sales would be down 20.92% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.41 -0.21 0.1 0.18
EPS Actual -0.31 -0.34 0.1 0.23
Revenue Estimate 558.52 M 895.73 M 1.47 B 1.41 B
Revenue Actual 707.64 M 930.24 M 1.44 B 1.43 B

Stock Performance

Shares of Under Armour were trading at $11.68 as of October 28. Over the last 52-week period, shares are down 38.6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Under Armour is scheduled to hold the call at 08:30:00 ET and can be accessed here.

Posted In: Earnings