On Tuesday, American sportswear manufacturer Under Armour Inc is scheduled to release its fourth-quarter earnings report on Tuesday. While some analysts have forecasted a possibly weak quarter from the company, the sportswear company is also expected to make announcements regarding any plans that will lead to a turnaround on its performance.
Wall Street analysts are expecting the company to post a mostly flat revenue for their fourth-quarter report with some stating that the company is about to face one of its most difficult
Although some investors are still awaiting any hint of positivity in the earnings of the company, the company has delivered a disappointing earnings report during the third quarter after Under Armour failed to boost its footwear sales.
Under Armour also missed most analysts estimates during the third quarter. The revenue of the company slipped by 5% to $1.4 billion with its wholesale consumer sales down by 13%. The company also posted adjusted earnings of $0.22 per share as well as restructuring charges worth $89 million.
The Baltimore-based company then forecasted a full-year adjusted earnings of $0.18 per share to $0.20 per share down from their previous forecast of $0.37 to $0.40 per share along with a weak single-digit revenue growth attributed to the demand and operational challenges in North America as well as their enterprise resource planning system and related service levels implementation.
For the fourth quarter, Under Armour has been forecasted to post losses of around $0.02 per share to profits of $0.03 per share while its revenue is set to remain mostly flat at around $1.3 billion while its full-year earnings are expected to at least rise by a weak single-digit from the previously forecasted growth rate of around 9% to 11% while its full-year earnings are expected to come between $0.18 to $0.20 per share.
Under Armour shares which last traded around $12.46 to as much as $13.99 per share during the trading session on Monday has lost around 45% last year and was down by 7.76% during the past twelve weeks. However, Under Armour shares were one of the biggest gainers during Monday’s trading session on the S&P 500 with the stock rallying by almost 6%.
Shares of Under Armour declined to a multi-year low during the release of its third-quarter earnings due to the disappointing numbers. Prior to the release of its fourth-quarter earnings, shares of Under Armour has been given a downgrade by a number of finance and research institutions due to the overall weak outlook on its upcoming earnings.
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