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Under Armour rises 7% in premarket after earnings beat

Under Armour rises 7% in premarket after earnings beat
Dino Kurbegovic

Under Armour (NYSE: UA, UAA) announced on August 3 its unaudited financial results for the first quarter of fiscal 2023. The revenue came in at $1.35 billion, beating estimates by $20 million, but the growth remained flat. Similarly, earnings per share (EPS) came in line with expectations at $0.03.  

Interim President and CEO Colin Browne remained bullish and confident of the Under Armour brand, expressing his support for the team and their ability to deliver more growth and profitability in the future.

“We delivered our quarter, are holding our full-year revenue outlook, and remain bullish on our brand strength while we navigate the current environment. Our relentless approach of delivering groundbreaking innovation will continue to manifest through 2022 and beyond as we work to unleash the full potential of the Under Armour brand.”

He also added:

“Moving forward, we are digging in to amplify the strengths of our core strategy while creating additional opportunities for athletes to wear UA throughout their day. I have full confidence in the exceptional capabilities of our global team to deliver more pronounced growth and profitability over the long term.”

At the time of writing, UA is trading up 6.79% in the premarket session, after it beat revenue estimates. 

UA premarket data. Source: Nasdaq 

UA chart and analysis 

In the last month, UA has been trading in the $7.22 to $8.42 range with a negative long-term trend. With the premarket moves, the short-term trend remains positive while the resistance line moved to $10.36 and the support line to $8.

UA  20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

The firm continues to believe that its initial outlook will hold throughout the rest of the year, with the negative influence of the U.S. dollar affecting roughly 200 basis points. However, revenue growth will still remain between 5% and 7%. 

Investors in Under Armuor have had a tough 2022 as the stock lost over 54% of its value year-to-date (YTD); however, the growth and expectations laid out in the earnings can give them some respite while keeping one eye on macro trends that will play a key role for UA performance. 

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