Why Under Armour Stock Is Sprinting Higher Today

Under Armour Inc UA UAA shares are trading higher Wednesday after the athletic apparel company turned in better-than-expected financial results and raised its full-year earnings outlook.

What Happened: Under Armour said fiscal third-quarter revenue jumped 3% year-over-year to $1.58 billion, which beat consensus estimates of $1.55 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of 16 cents per share, which beat average analyst estimates of 9 cents per share.

Inventory was up 50% during the quarter to $1.2 billion. Gross margins declined 650 basis points to 44.2%.

Under Armour ended the quarter with $850 million in cash and equivalents. 

"We are pleased to have delivered solid third-quarter results and remain on track to achieve our full-year operational and financial goals," said Colin Browne, interim president and CEO of Under Armour.

Under Armour continues to expect full-year 2023 revenue growth in the mid single-digits. The company raised its full-year earnings outlook from a range of 44 cents to 48 cents per share to a range of 52 cents to 56 cents per share versus estimates of 46 cents per share.

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UA Price Action: Under Armour has a 52-week high of $17.74 and a 52-week low of $5.74.

The stock was up 6.58% at $11.50 Wednesday morning, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.