Under Armour: shares collapse after another profit warning.
(CercleFinance.com) - Under Armour scared investors again on Hallowe'en after it reported Q3 revenue that was well below expectations, while cutting its sales and earnings outlook for the remainder of 2017.
The Baltimore-based sportswear maker announced Q3 revenue that was down 5% at 1.4 billion dollars, due to lower demand in North America, while net income plunged to 54 million dollars, from 128 million dollars a year ago.
FY 2017 net revenue is now expected to report a low single-digit percentage rise, reflecting lower North American demand and "operational challenges."
After this second warning in a slightly under three months, the company's shares collapsed 17% in New York this morning.
The shares have now fallen by over 52% since the beginning of the year, with some traders saying that many analysts have been downgrading the shares to sell ahead of results.
"The current market cap and multiples are too low given US brand health, the Curry 4 launch, and opportunity for international growth," one professional said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The Baltimore-based sportswear maker announced Q3 revenue that was down 5% at 1.4 billion dollars, due to lower demand in North America, while net income plunged to 54 million dollars, from 128 million dollars a year ago.
FY 2017 net revenue is now expected to report a low single-digit percentage rise, reflecting lower North American demand and "operational challenges."
After this second warning in a slightly under three months, the company's shares collapsed 17% in New York this morning.
The shares have now fallen by over 52% since the beginning of the year, with some traders saying that many analysts have been downgrading the shares to sell ahead of results.
"The current market cap and multiples are too low given US brand health, the Curry 4 launch, and opportunity for international growth," one professional said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.