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Under Armour Runs Past Estimates

The athletic apparel maker again raises its guidance.
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Under Armour

(UARM)

posted a 90% jump in third-quarter earnings, topping Wall Street's targets, and again boosted its outlook for the full year.

The Baltimore-based athletic-apparel maker earned $16 million, or 32 cents a share, up from $8.4 million, or 20 cents a share, a year ago. The latest quarter included a gain of $2.3 million, or 5 cents a share, related to new state tax credits.

Analysts polled by Thomson First Call anticipated earnings of 25 cents a share.

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Under Armour's revenue rose to $127.7 million from $86.6 million, exceeding Wall Street's target of $119 million.

"Our growth this quarter reflects the brand's momentum both at retail and within the entire athletic landscape," said Kevin Plank, chairman and CEO, in a statement. "We believe the shift away from standard cotton to performance products at all levels of sport continues to fuel growth in our core categories while also creating a demand for new product lines and tip-of-spear product extensions.

Under Armour now sees full-year revenue of $410 million to $420 million, up from an already raised July forecast of $400 million to $410 million. Wall Street expects sales of $409 million.

The company predicts 2006 net income of $38.5 million to $39.5 million, higher than its prior view of $34 million to $35 million.

For 2007, Under Armour expects earnings and revenue will exceed its long-term 20% to 25% growth targets.

Despite the earnings beat, shares of Under Armour were trading down 86 cents, or 1.8%, to $45.88. The stock has soared 85% since its hugely popular initial public offering last November.