UA announced its earnings report this morning and investors responded by sending the stock from $55.18 to a pre-market high of $66. The Co also raised 2007 guidance. Here's the summary from Briefing.com:
7:16AM Under Armour beats by $0.08, beats on revs; raises Y07 outlook (UA) 55.18 : Reports Q2 (Jun) earnings of $0.11 per share, $0.08 better than the Reuters Estimates consensus of $0.03; revenues rose 50.6% year/year to $120.5 mln vs the $105.5 mln consensus. Gross margin for the quarter increased to 49.0% compared to 47.8% in the prior year due to a combination of factors including the previously disclosed shift of certain customer incentives to selling, general and administrative expenses, which were recorded as discounts in the prior year. Co raised guidance for FY07, sees FY07 revs of $580-590 mln vs. $583.30 mln consensus (previous guidance was $560-580 mln); sees annual income from operations in the range of $79-81 mln, previously expected $74.5-77.5 mln.Shortsqueeze.com lists UA's short interest at a whopping 50%, which means the pain may not be over just yet for shorts.
Funny, or not so funny — UA is one of the stocks that my nephew expressed an interest in having. Of all the stocks that I've monitored for him recently, UA had slipped off my radar. I didn't get wind of UA's earnings date until yesterday. Though the stock has pulled back to $63.50, it'll take some inside-voice debating for me to chase it on my nephew's behalf. The stock is 15% up from yesterday's close.
He wears the product and believes strongly in the Co's fundamentals. It's a good problem, or challenge, for the day.
Pupule Paul has no position in UA.
No comments:
Post a Comment