Shares of Under Armour (NYSE: UAA) paired early gains on Wednesday despite the fact that the sports equipment company reported fiscal Q3 adjusted earnings of $0.16 per share, which beat analysts’ consensus estimate of $0.09.
Sales increased by 3% year-over-year in the third quarter to $1.6 billion, beating analysts’ expectations by $30 million.
UAA also gave an update regarding accelerated share repurchase (ASR) transactions and bought back $75 million worth of its Class C stock. So far, the company has bought $425 million worth of shares under the company’s two-year, $500 million program, which the Board of Directors had approved in February last year.
Looking forward, management now expects its FY23 revenue to increase in the low single-digit percentage while adjusted diluted earnings per share are now expected to be between $0.52 and $0.56, far better than analysts’ expectations of $0.46.
Overall, Wall Street analysts are cautiously optimistic about UAA stock with a Moderate Buy consensus rating based on seven Buys and four Holds.
