Under Armour Shares Down 12% Despite Q3 Beat

Under Armour Inc (NYSE:UAA) reported better-than-expected Q3 results on Wednesday. Despite the beat, shares fell more than 12% since then.

Q3 EPS was $0.16, better than the Street estimate of $0.09. Revenue came in at $1.58 billion, compared to the Street estimate of $1.55 billion. The company provided its fiscal 2023 outlook, expecting EPS in the range of $0.52-$0.56, compared to the Street estimate of $0.46.

Analysts at Oppenheimer view the results and updated guidance as solid but still suggestive of a recovering brand, struggling amid stepped-up macro and sector pressures. Their positive call on the company is generally longer term in focus and reflective of the potential for new management to eventually expand the power and reach of Under Armour, off a now more streamlined and cost-effective operating model.