Will Under Armour (UA) Disappoint This Earnings Season?
Apparel retailer Under Armour, Inc. (UA) is set to report its second-quarter 2014 results on Jul 24, 2014. Last quarter, it posted a positive surprise of 50.0%. Let us see how things are developing for this announcement.
Growth Factors This Quarter
Under Armour had a great start to the year posting remarkable first quarter 2014 results driven by double-digit growth in certain product categories as well as international expansion. Despite this, the company provided conservative outlook for the year in order to mitigate the effects of tougher year-over-year comparisons. Under Armour’s second quarter results are likely to be affected by the same.
Earnings Whispers
Our proven model does not conclusively project Under Armour as likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: ESP for Under Armour is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 8 cents.
Zacks Rank #3: Under Armour’s Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
Avis Budget Group, Inc. (CAR) Earnings ESP stands at +3.18% and it carries a Zacks Rank #2.
Colgate-Palmolive Co. (CL) with an Earnings ESP of +1.37% holds a Zacks Rank #2.
Marinemax Inc. (HZO) has an Earnings ESP of +13.21% and a Zacks Rank #2.
Read the Full Research Report on UA
Read the Full Research Report on CAR
Read the Full Research Report on CL
Read the Full Research Report on HZO
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