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Under Armour (UAA) Tumbles 28% on Q4 Earnings & Sales Miss

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Under Armour Inc. (UAA - Free Report) , a leading designer, marketer, and distributor of authentic athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities, released fourth-quarter 2016 results, wherein earnings of 23 cents a share came lagged the Zacks Consensus Estimate of 25 cents and fell 4.2% from 24 cents a share earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has been stable in the last 30 days. Further, Under Armour’s performance in the trailing four quarters (including the quarter under review) gives a positive picture, with an average beat of 27%.

Under Armour, Inc. Price and EPS Surprise

Under Armour, Inc. Price and EPS Surprise | Under Armour, Inc. Quote

Revenues: Under Armour generated net sales of $1,308.1 million that increased 11.7% year over year but lagged the Zacks Consensus Estimate of $1,412 million. The year over year increase in revenue was driven by strong performance across all its product categories and geographies. While Wholesale revenues increased 5%, direct-to-consumer revenues jumped 23%.

For 2017, the company anticipates revenues to increase in the range of 11–12% to about $5.4 billion, with currency-neutral revenues rising 12–13%.

Zacks Rank: Currently, Under Armour carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Under Armour’s shares are down nearly 28% during pre-market trading hours following the earnings release. Clearly, a negative sentiment is palpable among investors as the company misses top and bottom line estimates.

Check back later for our full write up on Under Armour’s earnings report!

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