Needham & Company Maintains a 'Hold' on Under Armour (UA); Raising Estimates

Needham & Company maintains a 'Hold' on Under Armour, Inc. (NYSE: UA).

Needham analyst says, "UA’s 3Q results saw sales rise 42%, better than the 33% increase we expected. EPS of $0.88 were also better than our $0.84 estimate, but most of this upside was driven by a lower tax rate. Gross margins were slightly better than our estimate, but down 250 bps. Inventory rose more than we expected, far outpacing sales growth. Management said that it expects sales and profit growth in 2012 to be at the high end of its long-range growth range of 20% to 25%, better than the 20% (sales) growth rate we had previously modeled. We are raising our 2011, 2012 and 2013 estimates to reflect the lower projected tax rate, as well as somewhat better operating growth than our prior estimates."

"We have raised our sales and EPS estimates for 2011, 2012 and 2013. Our 2011 EPS estimate is now $1.90, up from our prior estimate of $1.85. We have raised our 2012 EPS estimate by $0.10 to $2.40, and our 2013 EPS estimate by $0.15 to $2.90. The increases are driven by higher sales forecasts and a lower tax rate."

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 $80.15 yesterday.

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