Under Armour beats on revenue and talks up Jordan Spieth, but its forecast missed expectations and now the stock is tumbling
Under Armour just reported first quarter earnings per share that matched estimates and revenue that beat expectations, while also raising its revenue outlook and talking up Masters winner Jordan Spieth.
Following the news, however, shares of the company were down about 4% in pre-market trade as this increased revenue view came in shy of expectations.
In the first quarter, the athletic footwear and apparel company reported earnings per share of $0.05, matching expectations, on revenue of $805 million, beating Wall Street's expectations for revenue of $802.5 million, according to estimates from Yahoo! Finance.
The company's outlook, however, disappointed, with Under Armour raising its full-year revenue outlook to $3.78 billion from $3.76 billion, shy of expectations for revenue of $3.82 billion.
The company also spent time in its press release talking up its 21-year-old golf star Jordan Spieth, who earlier this month won the prestigious Masters golf tournament while tying the course record.
In its earnings release, Under Armour CEO Kevin Planck said, "We are incredibly proud that Under Armour athlete Jordan Spieth captured the Green Jacket in record-setting fashion at The Masters last week. At just 21, Jordan is already firmly entrenched on the global sports stage and we look to support Jordan throughout his career winning major championships as he adds to his legacy."
Last week, we noted that analysts at Piper Jaffray raised their price target on shares of Under Armour to $93 from $90 following Spieth's win.