Pre-earnings brief
Reports
Wed, Aug 3, 2022
Est. EPS
—
Est. revenue
—
Implied move
±8.5%
EPS beat rate
0%
Under Armour, Inc. is a sports apparel and accessories company that focuses on performance-oriented clothing and gear. As a player in the consumer discretionary sector, it is influenced by trends in consumer spending and preferences for athletic wear, which have been growing in recent years.
Last quarter
In Q1-2027, Under Armour reported an EPS of $0.05, which did not meet analyst expectations. The stock reacted negatively, dropping 5.42% the following day.
EPS beat streak
0Q
EPS beat rate
0%
Avg EPS surprise
+0.00%
Avg 1-day reaction
-0.14%
Overall expectations for Under Armour's upcoming earnings are uncertain due to a lack of analyst estimates and management guidance. Investors are cautious given the company's recent performance.
Bull case
If Under Armour can show strong revenue growth and improved margins, it could signal a turnaround in its business strategy and boost investor confidence.
Bear case
Conversely, if the company reports weak earnings or disappointing guidance, it could reinforce concerns about its competitive position and lead to further stock declines.
The print will turn on these.
Q1
What will be the reported revenue growth rate for this quarter?
Revenue growth is a key indicator of Under Armour's ability to attract and retain customers, which is critical for its recovery.
Q2
How will the gross margin compare to previous quarters?
Understanding gross margin trends will help investors gauge the company's pricing power and cost management strategies.
—
Est. EPS
—
Est. Rev
—
Impl. Move
—
Why consensus could be wrong
The Street may underestimate Under Armour's ability to capitalize on the growing trend of athleisure, which could lead to stronger-than-expected revenue growth.
Supporting evidence
Historical data shows that Under Armour has previously surprised the market with better-than-expected performance.
The options market is pricing a smaller move than the historical average, indicating potential for a larger reaction.
Recent trends in consumer spending favor athletic apparel, which could benefit Under Armour.
Key risk
If revenue growth exceeds expectations, it could challenge the current bearish sentiment.
Pre-commit to what would confirm each case.
This quarter's performance will be pivotal in determining whether Under Armour can stabilize its financials and regain investor trust.
Bull confirmed if
Revenue growth of at least 10% year-over-year would confirm a positive outlook for the company.
Bear confirmed if
A decline in gross margin below 40% could signal ongoing challenges in profitability.
What the market is pricing for the move.
Implied Move
±8.49%
Historical Avg
±11.24%
The options market is pricing in an expected move of about 8.5%, indicating some uncertainty around the earnings report.
Options are pricing a smaller move than the historical average, suggesting potential for a larger reaction.
ATM IV
0.3%
30d HV
35.6%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Under Armour beats expectations, history suggests a potential stock increase of around 11.24%, confirming a positive shift in business momentum.
In line / cautious
A cautious inline report could lead to minimal movement, as investors digest management's commentary on future prospects.
Miss
If the company misses expectations, history suggests a potential decline of around 5.42%, reinforcing negative sentiment.
The lines on the call that would change the story.