: Under Armour tops fiscal second-quarter estimates but lowers full-year revenue outlook

Under Armour Inc.’s stock UA rose 5% early Wednesday before paring that gain to 1.5%, after the Baltimore, Md.-based sporting goods and footwear maker posted better-than-expected earnings for its fiscal second quarter but lowered its revenue guidance. The company had net income of $109.6 million, or 24 cents a share, for the quarter to Sept. 30, up from $86.9 million, or 19 cents a share, in the year-earlier period. Revenue fell to $1.567 billion from $1.574 billion a year ago. The FactSet consensus was for EPs of 20 cents and revenue of $1.566 billion. Chief Executive Stephanie Linnartz said results, and profitability in particular, exceeded the company’s own expectations. “Consequently, we are maintaining our fiscal 2024 operating income and EPS outlook even as we lower our revenue expectations primarily in response to challenges in North America during the back half of the year,” she said in a statement. The company is now expecting fiscal 2024 revenue to be down 2% to 4%, compared with prior guidance of flat to up slightly. But its’ sticking with its EPS guidance of 47 cents to 51 cents. The stock has fallen 25% in the year to date, while the S&P 500 SPX has gained 14%.

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