Under Armour (UA) Q3 Results Solid, FY15 Revs Outlook Appears Conservative - FBR

FBR reaffirms Under Armour (NYSE: UA) at Outperform with a price target of $115 following Q3 results issued earlier today.

Analyst Susan Anderson noted the UA posted Q3 EPS of $0.45, which was flat with the firm's expectations. Revenue growth of 28 percent was slightly behind views.

Anderson continued, Recall that earlier BTS shipments likely subtracted 100 bps to 200 bps from 3Q growth. 2015 revenue growth guidance was increased to +27% ($3.91 billion), versus +25% prior ($3.84 billion) and FBR/consensus of 29%/26%, though we continue to view this as conservative given incremental 4Q contributions from outerwear/the Curry Two and elevated DTC execution. We continue to see rev growth of ~30% over next several years—see UA Madness proprietary int'l/footwear surveys and upside revenue analysis. We will be listening on the call this morning for more details on international growth (including progress in Brazil, China, and Europe and potential new market launches), footwear/apparel pipeline for 4Q/1H16, potential additional sponsorships, and an update on the Connected Fitness initiative.

For an analyst ratings summary and ratings history on Under Armour click here. For more ratings news on Under Armour click here.

You May Also Be Interested In

• Stifel Upgrades Barry Callebaut AG (BARN:SW) (BYCBF) to Buy
• Carl Zeiss Meditec AG (AFX:GR) (CZMWY) PT Lowered to EUR115 at HSBC
• Sino Biopharmaceutical Ltd. (1177:HK) (SBMFF) PT Lowered to HK$4.50 at HSBC