Needham & Company Maintains a 'Hold' on Under Armour (UA); 2Q Sales & EPS Beat Estimates; Guidance Raised Again But We Think Stock Already Reflects
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Price: $5.25 +0.19%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Under Armour, Inc. (NYSE: UA).
Needham analyst says, "UA exceeded expectations yet again, with 2Q’11 net revenue of $291.3 million (+42% YoY) versus our estimate of $268.0 million and consensus of $273.6 million. UA’s new Charged Cotton line helped drive U.S. apparel growth of 36% YoY (against a difficult comp), and a new running shoe led footwear gains of 31%. Direct to Consumer (DTC) posted continued high growth of over 80%. Gross margins were a disappointment at 46.3% (down 250 bps YoY). Higher sales volume and controlled SG&A led to operating margin expansion of 50 bps. EPS were $0.12, beating our estimate of $0.10 and consensus of $0.08, vs. $0.07 a year ago. Despite these strong results and higher 2011 guidance, we maintain our HOLD rating, as we believe stellar growth is already discounted in share price."
For more ratings news on Under Armour, Inc. click here and for the rating history of Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $75.45 yesterday.
Needham analyst says, "UA exceeded expectations yet again, with 2Q’11 net revenue of $291.3 million (+42% YoY) versus our estimate of $268.0 million and consensus of $273.6 million. UA’s new Charged Cotton line helped drive U.S. apparel growth of 36% YoY (against a difficult comp), and a new running shoe led footwear gains of 31%. Direct to Consumer (DTC) posted continued high growth of over 80%. Gross margins were a disappointment at 46.3% (down 250 bps YoY). Higher sales volume and controlled SG&A led to operating margin expansion of 50 bps. EPS were $0.12, beating our estimate of $0.10 and consensus of $0.08, vs. $0.07 a year ago. Despite these strong results and higher 2011 guidance, we maintain our HOLD rating, as we believe stellar growth is already discounted in share price."
For more ratings news on Under Armour, Inc. click here and for the rating history of Under Armour, Inc. click here.
Shares of Under Armour, Inc. closed at $75.45 yesterday.
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