Under Armour, Inc. (UAA) stock soared today following the announcement of third-quarter 2021 financial results. UAA stock price saw a push of 17.20% to reach $25.76 a share at the time of this writing. The stock was also performing well in the previous trade and went up by 0.09% at closing. Let’s deep dive to understand more of it.
Under Armour, Inc operates via developing, marketing, and distribution of apparel, and men and women accessories across the globe. The stock has a current market value of $9.56 billion and a 2,814,606 average trading volume. It was founded in 1996 and is based in Baltimore, Maryland.
Third Quarter 2021 Financial Results:
- UAA stock generated $1.5 billion in revenue in the third quarter of 2021, representing an increase of 8% compared to the previous year.
- The gross margin for the reported quarter was 51.0%, representing an increase of 310 basis points.
- The company spent $599 million in sales, general and administrative expenses in the third quarter of 2021. Restructuring charges for the reported quarter were $17 million.
- Under Armour recorded $172 million and $189 million operating income and adjusted operating income respectively.
- Net income and adjusted net income were $113 million and $145 million respectively in the third quarter of 2021.
- UAA stock recorded $0.24 diluted earnings per share and $0.31 adjusted diluted earnings per share in the reported quarter.
- By the end of the third quarter, UAA stock had $1.3 billion in cash and cash equivalents.
The full Year 2021 Outlook by UAA stock:
- Under Armour has projected a 25% increase in revenue as compared to the prior expectation of a low-twenties percentage increase for the full year 2021.
- UAA stock expects that its gross margin will increase 130 basis points approximately as compared to the last expectation of 50 to 70 basis point
- UAA stock is anticipating approximately $425 million operating income for the full year 2021. This compares to the previous range of $215 million to $225 million.
- The stock has projected $0.55 compared diluted earnings per share as compared to the previous $0.14 to $0.16 diluted earnings per share expected previously.
- Adjusted diluted earnings per share for the full year of UAA stock is expected to reach approximately $0.74.
Conclusion:
Investors are responding positively to the release of third-quarter 2021 financial results by the UAA stock. The strong outlook for the full year 2021 reflects that this stock is progressing and can be a good bet for long term investors.
