NEW YORK, NY / ACCESSWIRE / April 28, 2017 / Impressive first quarter earnings and an upgrade from Piper Jaffray sent PayPal to new highs on Thursday, while Under Armour shares surged after the company posted a smaller loss than was expected for Q1. Investors were optimistic that Under Armour may again see the growth it saw a year ago.
RDI Initiates Coverage on:
Under Amour Inc.
PayPal Holdings Inc.
PayPal Holdings, Inc. soared to a new 52-week high on Thursday and hit as high as $48.10 during intra-day trading after reporting first quarter 2017 earnings after market close Wednesday. The company beat expectations sending shares up over 6% in after-hours trading Wednesday. The global online payments company reported an adjusted 44 cents per share for the first quarter, which came in higher than the 41 cents that analysts had been waiting for. Net income at $384 million was up 5% compared to last year, while revenue at $2.98 billion came in slightly ahead of the $2.94 billion that analysts had expected, according to FactSet. CEO Dan Schulman stated, "With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments." The company also announced that it would be offering a $5 billion share repurchase program. Piper Jaffray has upgraded the stock from "Underweight" to "Neutral" and gave it a $45 price target. Shares have climbed over 19.5% so far this year with Thursday's gains.
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Under Armour shares saw impressive gains on Thursday and even hit as high as $22.12 in intra-day trading. For the first quarter, Under Armour posted its first ever operating loss of $2.3 million or 1 cent per share. According to Thomson Reuters, analysts had been expecting a loss of 4 cents per share for the quarter. Revenue at $1.12 billion also came in ahead of the $1.11 billion that analysts were looking for. CEO Kevin Plank wasn't thrilled with the company's shoe revenue growth number. He said in an earnings conference call, "We don't like it, and we don't accept it." Shares of Under Armour have fallen approximately 25.40 percent year-to-date.
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