Under Armour (UAA) Lined for Q2 Earnings: Here's What to Expect
Under Armour, Inc. UAA is likely to report a decline in the top line from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2024 earnings on Nov 8, before market open. The Zacks Consensus Estimate for revenues is $1,566 million, indicating a dip of 0.5% from the prior-year fiscal period’s reported figure.
The bottom line of this developer, marketer and distributor of apparel, footwear and accessories is expected to increase from the prior-year fiscal quarter’s reading. The consensus estimate of earnings of 21 cents per share for the fiscal second quarter has been stable over the past 30 days. The figure suggests a rise of 5% from earnings of 20 cents per share reported in the year-ago period.
This Baltimore, MD-based player has a trailing four-quarter earnings surprise of 72.4%, on average. In the last reported quarter, Under Armour’s bottom line outperformed the Zacks Consensus Estimate by a margin of 166.7%.
Key Things to Note
Under Armour’s results for the fiscal second quarter are likely to have been hurt by a tough operating landscape including the inflationary pressures and adverse currency fluctuations. The company has been witnessing weak margins due to increased promotions and an unfavorable mix. The company has been witnessing softness in its North American business. These limitations, coupled with any deleverage in SG&A expenses and product costs, are likely to have weighed upon the company’s quarterly performance.
On its last earnings call, Under Armour projected second-quarter revenues to be flat to down slightly year over year, including a low single-digit fall in the company’s North American business. This will be partly offset by a mid-single-digit increase in the international business. Further, inventory is estimated to be up at a mid to high single-digit percentage rate at the end of the fiscal second quarter.
On the flip side, Under Armour’s focus on strengthening its brand through enhanced customer connections, effective innovations, better price points and a new loyalty program appears encouraging. UAA’s strategy to focus on improving sales through product innovation, investments in the stores and acceleration of e-commerce capabilities are other positives. The Zacks Consensus Estimate for the company’s direct-to-consumer (DTC) channel is pegged at $614 million, showing a year-over-year increase of 6.4%.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Under Armour this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Under Armour, Inc. Price and EPS Surprise
Under Armour, Inc. price-eps-surprise | Under Armour, Inc. Quote
Under Armour has an Earnings ESP of +5.58% and a Zacks Rank of 3.
More Stocks With the Favorable Combination
Here are three other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
Crocs CROX currently has an Earnings ESP of +0.88% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register top and bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for CROX’s quarterly earnings per share of $3.09 suggests an increase of 4% from the year-ago quarter’s levels.
Crocs has a trailing four-quarter earnings surprise of 19.9%, on average. The consensus estimate for CROX’s quarterly revenues is pegged at $1.03 billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
Costco COST currently has an Earnings ESP of +2.02% and a Zacks Rank of 2. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.9 billion, suggesting growth of 6.3% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
Church & Dwight Co. CHD has an Earnings ESP of +1.65% and a Zacks Rank of 3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.7% from the figure reported in the prior-year quarter.
Although the consensus estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, the figure suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
