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Is Under Armour (UA) Poised for an Earnings Beat in Q3?

Under Armour, Inc.UA , the developer, marketer and distributor of branded performance apparel, footwear, and accessories, is slated to report third-quarter 2015 results on Oct 22. The big question facing investors is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 11.3%. Let's see how things are shaping up for this announcement.

Zacks Model Shows Likely Earnings Beat

Our proven model shows that Under Armour is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 46 cents and the Zacks Consensus Estimate is pegged at 44 cents. So the ensuing +4.55% ESP and the company's Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.

Factors Influencing this Quarter

Under Armour's sustained focus on brand development, DTC business expansion, product innovation and foray into technology-based fitness business have boded well. With increasing consciousness about fitness among people, the company has been acquiring fitness technology companies. The company is also entering into deal with rising athletes including basketball star Stephen Curry and golfer Jordan Spieth, which will help in enhancing brand recognition and get an edge over its competitors.

Other Stocks Poised to Beat Earnings Estimates

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

American Eagle Outfitters, Inc. AEO has an Earnings ESP of +10.00% and a Zacks Rank #2 (Buy).

L Brands, Inc. LB has an Earnings ESP of +2.08% and a Zacks Rank #3.

The Children's Place, Inc. PLCE has an Earnings ESP of +1.54% and a Zacks Rank #3

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UNDER ARMOUR-A (UA): Free Stock Analysis Report

AMER EAGLE OUTF (AEO): Free Stock Analysis Report

CHILDRENS PLACE (PLCE): Free Stock Analysis Report

L BRANDS INC (LB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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