Canaccord Genuity on Under Armour (UA): Protect This House
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Price: $5.19 +0.78%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Under Armour (NYSE: UA): Protect this house.
Canaccord Genuity Consumer Product Analyst Camilo Lyon remains bullish on shares of Under Amour heading into the company’s Q1/12 earnings, due to be released on Friday. He believes his above-consensus earnings estimates could prove to be conservative due to stronger top-line trends he has seen during the quarter. In addition, Lyon’s checks with industry contacts suggest strong demand trends have continued into April. He believes new product introductions (ColdBlack), selective price increases (in the range of 10-15%), estimated 59% direct-to-consumer growth (57% growth in outlets and 65% growth in e-commerce), and ever-improving footwear should, in his view, all contribute to sales growth of at least 20%, with upside likely. Checks with his industry contacts (retailers and suppliers) point to solid demand trends continuing in April, suggesting conservatism in management’s ~20% 2012 revenue growth guidance. As such, Lyon puts a 50/50 probability of increased guidance on the Q1 call. He is modeling revenue growth of 20% and EPS of $0.25 versus consensus of 21% and $0.24, respectively. Lyon also expects gross margin pressure of ~110bps from input cost pressures not yet abating.
Canaccord Genuity Consumer Product Analyst Camilo Lyon remains bullish on shares of Under Amour heading into the company’s Q1/12 earnings, due to be released on Friday. He believes his above-consensus earnings estimates could prove to be conservative due to stronger top-line trends he has seen during the quarter. In addition, Lyon’s checks with industry contacts suggest strong demand trends have continued into April. He believes new product introductions (ColdBlack), selective price increases (in the range of 10-15%), estimated 59% direct-to-consumer growth (57% growth in outlets and 65% growth in e-commerce), and ever-improving footwear should, in his view, all contribute to sales growth of at least 20%, with upside likely. Checks with his industry contacts (retailers and suppliers) point to solid demand trends continuing in April, suggesting conservatism in management’s ~20% 2012 revenue growth guidance. As such, Lyon puts a 50/50 probability of increased guidance on the Q1 call. He is modeling revenue growth of 20% and EPS of $0.25 versus consensus of 21% and $0.24, respectively. Lyon also expects gross margin pressure of ~110bps from input cost pressures not yet abating.
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