Q4 Earnings Fail To Lift Prices
Shares in US sportswear giant Under Armour fell sharply on Friday despite a set of better-than-expected Q4 earnings. UAA saw earnings per share of $0.23, far above the $0.06 Wall Street was looking for. Revenues were also higher than expected at $1.529 billion, versus $1.469 billion expected. While these releases were above forecasts, they marked a turn lower from the prior quarter’s results which came in at $0.31 and $1.546 billion for earnings and revenues respectively.
Looking ahead, the company warned that COVID disruptions would likely damage results in the current quarter. UAA flagged supply-side issues, including longer transport times, higher transport costs, backlogs and worker shortages as key issues weighing on its margins. With this in mind, UAA is looking for a severe dip in EPS to around $0.02 - $0.03 for the current quarter as it continues to navigate these issues.
Technical View
Under Amour
The sell off in stock prices has seen UAA trading back down to test the broken bear channel, rising trend line and the 17.47 level support. This is a big technical area for the pair and a break here will be a major bearish development. If price can hold here, the focus will be on a rotation higher towards 18.58 and 19.92. To the downside, a slip lower will see 15.41 come into focus.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.