The company reported a loss in earnings per share, as expected, but not as severe as though. Earnings per share loss came in at 1 cent versus the expected loss of 4 cents. The revenue came in at $1.12 billion against the $1.11 billion that was expected. Another statistic point you look at is sales climbed about seven percent to $1.12 billion from $1.05 billion a year earlier. These are numbers that appears to be close to what everyone was expecting, but you have to look deep into the fundamentals to fully understand if the company is gong to continue to succeed.
Some of the risks that the company poses is first, the amount of competition in this space. If they begin to slow on production or their product quality begins to slip, it can certainly hurt sales and ultimately give up market share. Another risk to look at is whether or not that company can advertise in the major sporting venues and land brand deals. In the NFL it currently has a deal with Nike, and if the company could push into one of the major sports, it would certainly raise brand awareness. So the risk is lack of marketing could hurt the company in the long run.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Under Armour income statement, its balance sheet, and the statement of cash flows. Potential Under Armour investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Under Armour investors may use each financial statement separately, they are all related. The changes in Under Armour's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Under Armour's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Under Armour
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Under Armour performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Under Armour shares is the value that is considered the true value of the share. If
the intrinsic value of Under is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Under Armour. Please read more on our
fundamental analysis page.
How effective is Under Armour in utilizing its assets?
Under Armour C reports assets on its Balance Sheet. It represents the amount of Under resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Under Armour aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Apparel, Accessories & Luxury Goods space. To get a better handle on how balance sheet or income statements item affect Under volatility, please check the breakdown of all its
fundamentals.
Are Under Armour Earnings Expected to grow?
The
future earnings power of Under Armour involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Under Armour factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Under Armour
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Under
expected earnings.
Under Armour Gross Profit
Under Armour Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Under Armour previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Under Armour Gross Profit growth over the last 10 years. Please check Under Armour's
gross profit and other
fundamental indicators for more details.
Breaking down Under Armour Indicators
If you take a look at the stock chart, you can see that price has fallen from its previous highs and is doing so in a quick manner. This is slightly worrisome as investors or jumping out of the stock. However, you need to research on what the reasons are for the giant sell off over the last few months. Overall, the company still has potential, but with the brick and mortar stores closing, they need to find alternate ways to sell, with a majority of it being on the Internet.
Take a look at the company as a whole and begin to compare them against others in the industry to see which ones are providing the best value. The retail sector is getting hit hard so keep that in mind as well with you research. Use ratios and other data points to compare apples to apples, but if you get stuck, reach out to an investing professional and they can help to point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Under Armour C. Please refer to our
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