Under Armour Shares Fall Despite Topping Earnings and Sales Expectations

Wall Street was running away from shares of Under Armour Inc. (UAA)   on Tuesday, May 1.

The stock fell 6.3% after initially rising following the release of first-quarter earnings during the premarket session.

The athletic apparel company posted break-even first-quarter adjusted earnings and revenue of $1.19 billion that topped analysts' forecasts, which called for a loss of 5 cents and revenue of $1.12 billion. The net loss in the period was 7 cents a share, wider than the year-earlier loss of 1 cent. The company recorded restructuring charges in the latest quarter of $37.5 million.

Under Armour said apparel sales in the quarter rose 7% on strength in men's training, while footwear sales rose 1%.

Cannacord Genuity analyst Camilo Lyon showed lack of faith in the company's turnaround efforts ahead of the earnings in a note on Monday, April 30.

"We see no reason to be constructive on UAA as the product creation/segmentation malaise has not improved, personnel issues/discord continue to surface, the competition landscape is intensifying, and valuation appears indefensible," he wrote. Cannacord reiterated its sell rating and gave the company a $9 price target. 

 

More from Investing

3 Red-Hot Chip Stocks Trading At Bargain Prices

3 Red-Hot Chip Stocks Trading At Bargain Prices

Tempted by General Electric's Fat Dividend Yield? Grab Yourself a Burger Instead

Tempted by General Electric's Fat Dividend Yield? Grab Yourself a Burger Instead

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day