Under Armour shares soar after earnings beat, guidance raised

Under Armour Inc. UA, +0.79% UAA, +0.09% shares soared 9.1% in Tuesday premarket trading after the athletic company reported third-quarter earnings that beat expectations and raised its full-year outlook. Net income totaled $113.4 million, or 24 cents per share, up from $38.9 million, or 9 cents per share, last year. Adjusted EPS of 31 cents blew past the FactSet consensus for 15 cents. Revenue of $1.546 billion was up from $1.433 billion last year and was also ahead of the FactSet consensus for $1.477 billion. Under Armour now expects to recognize $525 million to $575 million in charges related to a restructuring plan announced in April 2020 of which $500 million have been recognized. The company expects to recognize the remaining charges by the first calendar quarter of 2022. Under Armour now expects full-year 2021 revenue to be up about 25% versus previous guidance for a low-20% increase. EPS is expected to reach 55 cents, up from previous guidance of 14 cents to 16 cents. And adjusted EPS is expected to be about 74 cents, up from a range of 50 cents to 52 cents. The FactSet consensus is for revenue of $5.492 billion, implying a rise of 22.7%, and EPS of 54 cents. Under Armour stock has rallied 28% for the year to date, outpacing the S&P 500 index SPX, +0.18%, which is up 22.8% for the period.