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Two Ways to Play: Under Armour Conquers Estimates


Strengthen your portfolio in good times and bad.

Under Armour's Beat 'n' Raise

Under Armour (UA) reported earnings for its fiscal fourth quarter. The athletic apparel retailer beat Wall Street expectations and raised its guidance for the fiscal year 2010. Fourth-quarter earnings came in at $0.30 a share, better than consensus estimates of $0.25 a share.

Meanwhile revenues rose 24% year-over-year to $222 million, slightly above estimates of $200 million. Under Amour also said gross margins increased to 51.4% in the last quarter compared with 50.7% in the same period last year. The result was due to increased higher margin sales in direct-to-consumer strategies.

Under Armour expects fiscal year 2010 EPS to be up 10% to 12%. It also sees revenues in the range of $945 to $960 million. Wall Street was expecting revenues around $915 million. Shares are slightly higher in premarket trading.

From the Bull Pen: On the daily chart, Under Armour shows a bullish inverted head-and-shoulders pattern. If you remain bullish, a sell stop can be set below $26 support.

From the Bear Cave: The retail ETF (RTH) has made a series of lower highs, which is somewhat disconcerting. A failed rally around $93.50-$94 could be an opportunity for a downside play. Keep an eye on that level.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 1.58%, India 0.10, Hang Seng 1.61%, Shanghai 0.25%, and Taiwan 1.78%.

Across the pond, we see the FTSE 0.14%, CAC 0.16%, DAX 0.20%

As of 8:00 AM EST, S&P Futures are trading +4.50 to 1099.25. Nasdaq futures are +5.00 to 1813.75.

A Look at Commodities

Over in commodities, crude oil is +0.15 to 74.85 while gold is -5.000 to 1093.10 this morning. Silver is -0.210 to 16.650 and copper -0.0320 to 3.3080.

The dollar Index is -0.0100 to 78.8600.

On the Radar


08:30 Initial Claims
08:30 Continuing Claims
08:30 Durable Orders 2.0% cons.

Click here for the full trading radar.

Good luck today!
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No positions in stocks mentioned.

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