This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Under Armour Soars After Blowout Quarter (Update 1)

Updated from 9:24 a.m. EST to reflect analyst comments in 8th paragraph. 

NEW YORK (TheStreet) -- At least this cold snap is benefiting someone. Shares of Under Armour (UA) exploded after the athletic apparel retailer reported fourth-quarter results that far exceeded expectations driven by an expanded fleece portfolio and new ColdGear Infrared products.

Before market open on Thursday, shares had added 11.9% to $95.38. If momentum can be sustained through Thursday's session, this will mark the company's highest-ever trading level since floating in 2005.

While retailers struggled with an aggressively promotional holiday season, Under Armour managed to easily boost sales through direct-to-consumer avenues, such as factory stores and e-commerce. The segment saw a 36% year-over-year increase in sales and now accounts for 39% of total revenue.

The Baltimore-based business recorded fourth-quarter revenue 35% higher than a year earlier to $683 million, while per-share earnings jumped 27% to 59 cents. Analysts polled by Thomson Reuters had expected earnings of 53 cents a share on $620 million in revenue.

For the December-ended fiscal year, the company recorded earnings of $1.50 a share, 24% higher than a year earlier. Revenue of $2.33 billion, of which apparel sales contributed $1.76 billion, soared 27% from 2012.

"By any measure, 2013 was a banner year for the UA Brand. We surpassed $2 billion in net revenues for the year, which culminated with our 15th straight quarter of at least 20% total growth," said CEO Kevin Plank in a statement.

Under Armour raised its 2014 revenue outlook to a range of $2.84 billion to $2.87 billion, 22% to 23% higher than 2013 results, and handily beating analyst consensus of $2.77 billion.

Bryan Ashenberg, analyst for premium service Breakout Stocks, noted the impressive earnings win is indicative of a smart company set to move higher. 

"The company continues to position itself to benefit from the tailwinds of cold weather and upcoming international sporting events, while also carving out a bigger presence in clothing for women and young people," he wrote in a report Thursday morning. 

Under Armour also remains one of Jim Cramer's favorite shares, a "stealth technology" stock set for a win. 

"This Baltimore-based apparel company is rolling out new products literally quarterly, with properties that keep you warm or monitor health in ways that you couldn't dream of just a few years ago. It is a factory of innovation," Cramer writes in his latest book Get Rich Carefully

TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B. The team has this to say about its recommendation:

"We rate UNDER ARMOUR INC (UA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs