Under Armour (UAA) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Under Armour (UAA) is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly influence its near-term stock price depending on how actual results compare to estimates [1][2]. Earnings Expectations - The earnings report is scheduled for August 8, 2024, with a consensus estimate of a quarterly loss of $0.08 per share, reflecting a year-over-year change of -500% [3]. - Revenues are projected to be $1.14 billion, down 13.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 5.38% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +15.74% suggests that analysts have recently become more optimistic about Under Armour's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Under Armour has consistently beaten consensus EPS estimates, achieving this in the last four quarters [12]. - In the last reported quarter, the company exceeded expectations by delivering earnings of $0.11 per share against an expected $0.07, resulting in a surprise of +57.14% [11]. Conclusion - Under Armour is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [15].