FINWIRES · TerminalLIVE
FINWIRES

Under Armour Guides Below Expectations After Q4 Miss; Shares Tumble

By
Under Armour Guides Below Expectations After Q4 Miss; Shares Tumble

Under Armour (UAA) issued weaker-than-expected full-year guidance on Tuesday after the sportswear maker's fiscal fourth-quarter adjusted loss narrowed less than analysts anticipated.

The company expects adjusted earnings of $0.08 to $0.12 per share in fiscal 2027, below the $0.23 consensus on FactSet. The outlook reflects continued investment and external cost pressures, partially offset by tariff-related refunds, the company said.

Revenue is projected to decline "slightly" this year, compared with Wall Street's expectation for $5.05 billion. Under Armour anticipates a low-single-digit sales decline in North America, while EMEA and Asia Pacific are expected to grow at a similar rate.

"That outlook reflects both continued consumer uncertainty and the deliberate choices we're making to reshape the business," CEO Kevin Plank said on an earnings call, according to a FactSet transcript. "We are prioritizing revenue quality over volume, strengthening the foundation and positioning the company to return to growth with stronger profitability and a more consistent brand expression."

Under Armour's shares slumped 19% in Tuesday trading.

The company expanded its restructuring program launched in 2024, bringing total expected costs to about $305 million. It has incurred $261 million to date and aims to substantially complete the plan by December.

In the three months ended March 31, the adjusted loss narrowed to $0.03 per share from $0.08 a year earlier, missing the $0.02 loss analysts expected. Revenue slipped 1% to $1.17 billion, roughly in line with estimates. North America sales fell 7%, while EMEA rose 7%, Asia Pacific gained 13%, and Latin America jumped 22%.

Wholesale revenue declined 2.6% to $747.7 million, while direct-to-consumer sales rose 5.1% to $405.7 million. Apparel revenue eased 0.3% to $778 million, footwear was little changed at $281.8 million, and accessories increased 2.3% to $93.7 million.

In the current quarter, the company expects adjusted EPS of breakeven to $0.02 and revenue to decline 2% to 3%, compared with Wall Street forecasts for $0.01 per share and $1.14 billion in sales.

"Overall, we expect the first quarter to represent the weakest revenue performance of the year, with growth rates improving progressively through the balance of fiscal 2027," Chief Financial Officer Reza Taleghani said on the call.

Price: $4.92, Change: $-1.15, Percent Change: -18.89%

Related Articles

Oracle Set to Post Strong Results Amid Tech Infrastructure Spending, Oppenheimer Says
US Markets

Oracle Set to Post Strong Results Amid Tech Infrastructure Spending, Oppenheimer Says

Oracle's (ORCL) fiscal fourth-quarter results are likely to benefit from robust spending on technology infrastructure, Oppenheimer said in a note emailed Tuesday.The cloud computing company is scheduled to release its quarterly results in June.Oracle's largest customers, partners and suppliers showed strong tech infrastructure spending in the calendar first quarter, Oppenheimer analysts Brian Schwartz and Idan Gutkind wrote.Advanced Micro Devices (AMD), which Oracle counts as one of its largest cloud infrastructure customers, expects the server central processing unit market to reach more than $120 billion by 2030, up from a $60 billion total addressable market previously projected.This "bodes well for Oracle achieving and/or exceeding (fiscal fourth-quarter) and medium-term guidance since it likely reflects greater than expected IT demand that Oracle will supply to its customers," Schwartz and Gutkind said.Oracle's restructuring, which reportedly includes some 30,000 job cuts, is another "positive" development heading into the print, the duo wrote.Oppenheimer is projecting fourth-quarter earnings per share of $1.98 for Oracle on revenue of $18.9 billion. Analysts in the FactSet poll are looking for non-GAAP EPS of $1.95 and sales of $19.1 billion.In March, Oracle said it expected reported revenue growth of 19% to 21% in the fourth quarter, with cloud sales seen rising 46% to 50%. Non-GAAP EPS was pegged at $1.96 to $2.Oracle is also likely to reap gains from "solid bookings growth" from OpenAI, Meta Platform (META), Nvidia (NVDA) and federal government commitments, the brokerage said. Additionally, Microsoft (MSFT) has outsourced its lower-margin training business to Oracle, Oppenheimer said.In February, Oracle said it was looking to raise up to $50 billion this year to expand its cloud infrastructure business.Oppenheimer raised its price target on Oracle's shares to $235 from $210, while reiterating its outperform rating on the stock.Price: $182.11, Change: $-11.74, Percent Change: -6.05%

$AMD$META$MSFT$NVDA$ORCL
Applied Materials Poised for Slight Quarterly Beat, Strong Outlook, RBC Says
US Markets

Applied Materials Poised for Slight Quarterly Beat, Strong Outlook, RBC Says

Applied Materials (AMAT) is expected to post fiscal second-quarter results slightly above Wall Street's estimates and provide an upbeat third-quarter outlook amid robust dynamic random-access memory and high-bandwidth memory spending trends, RBC Capital Markets said in a note e-mailed Tuesday.The brokerage projects the semiconductor equipment maker's second-quarter adjusted earnings at $2.64 a share on revenue of $7.65 billion, saying it expects a "slight" beat. Analysts polled by FactSet are looking for non-GAAP EPS of $2.68 and sales of $7.68 billion."DRAM spending trends remain strong on the back of extreme supply tightness and secular HBM demand," RBC analyst Srini Pajjuri said in a note to clients. "We expect the trend to continue through the year as clean room space availability improves and from new greenfield projects in 2027."RBC expects Applied Materials to issue third-quarter guidance 5% to 10% ahead of consensus estimates of $2.89 for adjusted EPS and $8.1 billion in revenue. The brokerage said this would be in line with peers Lam Research (LRCX) and Tokyo Electron and better than those of ASML (ASML) and KLA (KLAC)."(Applied Materials') management typically doesn't offer explicit (wafer fabrication equipment, or WFE) projections, but previously guided for 20% growth in its systems business in (2026), which we believe is tracking ahead," Pajjuri said.RBC raised its price target on the Applied Materials stock to $500 from $430 while reiterating its outperform rating.The company's shares were down 5.8% in Tuesday afternoon trade. The stock has jumped 63% so far this year.Transition to gate all around -- a next-generation transistor architecture for smaller chips -- has been a "key driver" from the company, while Taiwan Semiconductor Manufacturing's (TSM) adoption of back-side power is projected to be a tailwind in the second half of this year, RBC said."Looking ahead, we expect WFE to grow at a double-digit pace for the next (two to three) years driven by (generative artificial intelligence), extreme tightness in DRAM, and growing competition in advanced foundry," Pajjuri said.Applied Materials is scheduled to report its latest results Thursday.Price: $419.71, Change: $-23.91, Percent Change: -5.39%

$AMAT$ASML$KLAC$LRCX$TSM
EBay Turns Down GameStop's $55.5 Billion Takeover Bid
US Markets

EBay Turns Down GameStop's $55.5 Billion Takeover Bid

EBay (EBAY) rejected video game retailer GameStop's (GME) proposal to acquire the e-commerce company in what would have been a $55.5 billion deal.The takeover proposal is "neither credible nor attractive," eBay Chairman Paul Pressler said in a letter to GameStop Chief Executive Ryan Cohen. That letter was contained in a company press release dated Tuesday."The board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," Pressler said.GameStop did not respond to' request for comment.In making the decision, eBay considered factors including operational risks of a combined company and uncertainty regarding GameStop's financing proposal, according to the letter."EBay's board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders," Pressler added.GameStop, which holds a 5% stake in eBay, offered to purchase the company for $125 a share last week. The offer was structured as an equal mix of cash and stock.A potential merger would cut $2 billion from eBay's annual costs within a year, Cohen said in a letter sent to Pressler at the time.Last month, eBay reported first-quarter adjusted earnings of $1.66 per share on revenue of $3.09 billion, compared with $1.37 and $2.59 billion a year earlier. The company expected second-quarter adjusted EPS between $1.46 and $1.51, with revenue ranging from $2.97 billion to $3.03 billion.Price: $107.80, Change: $-0.33, Percent Change: -0.31%

$EBAY$GME