Athletic apparel company Under Armour (NYSE:UAA) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 4.2% year on year to $1.13 billion. On the other hand, next quarter’s revenue guidance of $1.31 billion was less impressive, coming in 4.1% below analysts’ estimates. Its non-GAAP profit of $0.02 per share was in line with analysts’ consensus estimates.
The company's Q2 forecast fell short of expectations, causing its shares to plummet 18% on Friday. Some analysts say investors have an overtly bearish view.
Shares of athletic apparel company Under Armour (NYSE:UAA)
fell 22.4% in the morning session after the company reported second-quarter results and issued a significantly weaker-than-expected outlook for the third quarter. The sportswear maker's revenue for the second quarter came in at $1.13 billion, which met Wall Street's expectations but represented a 4.2% decline year-over-year. However, its adjusted earnings per share of $0.02 missed consensus estimates. The main concern for investors was the bleak guidance for the upcoming quarter. Under Armour projected third-quarter revenue of $1.31 billion, falling 4.1% short of analyst forecasts. More dramatically, the company guided for adjusted earnings per share of just $0.02 at the midpoint, a stark contrast to the consensus estimate of $0.26.
Under Armour stock sinks after missing Wall Street estimates with first-quarter fiscal 2026 results of $1.13 billion in revenue and $9 million in adjusted net income.
Under Armour's Q1 fiscal 2026 earnings miss estimates, with weak Q2 outlook sparking a 15.7% pre-market stock plunge. Revenue and EPS fall short amid ongoing demand challenges.
Athletic apparel company Under Armour (NYSE:UAA) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 4.2% year on year to $1.13 billion. On the other hand, next quarter’s revenue guidance of $1.31 billion was less impressive, coming in 4.1% below analysts’ estimates. Its non-GAAP profit of $0.02 per share was in line with analysts’ consensus estimates.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
A number of stocks fell in the afternoon session after the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending.
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
