Seeking Alpha
0
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Under Armour: Digital Health Purchases To Hit Already Expensive Valuation

Under Armour (UA) continued the pattern of hitting quarterly numbers out of the park. At the same time as reporting Q4 numbers, the maker of performance athletic gear made an interesting leap into the fitness apps sector that will hit operating income growth. While it might provide long-term benefits, it will hit earnings growth at a time that the stock is already aggressively priced.

New Category Growth

The Q414 results for Under Armour were exceptional and that is now a norm for the company. Net revenues grew 31% YoY and EPS surged 35% to $0.40. The revenue number smashed analyst estimates and the EPS number was only slightly above estimates of $0.39. The number that sticks out the most is the full year EPS of only $0.95 compared to the stock price of over $73. The disproportion in those numbers usually doesn't last.

The new categories of footwear,… Read More …