Q4 Earnings Fail To Lift PricesShares in US sportswear giant Under Armour fell sharply on Friday despite a set of better-than-expected Q4 earnings. UAA saw earnings per share of $0.23, far above the $0.06 Wall Street was looking for. Revenues were also higher than expected at $1.529 billion, versus $1.469 billion expected. While these releases were above forecasts, they marked a turn lower from the prior quarter’s results which came in at $0.31 and $1.546 billion for earnings and revenues respectively.Looking ahead, the company warned that COVID disruptions would likely damage results in the current quarter. UAA flagged supply-side issues, including longer transport times, higher transport costs, backlogs and worker shortages as key issues weighing on its margins. With this in mind, UAA is looking for a severe dip in EPS to around $0.02 – $0.03 for the current quarter as it continues to navigate these issues.Technical ViewUnder AmourThe sell off in stock prices has seen UAA trading back down to test the broken bear channel, rising trend line and the 17.47 level support. This is a big technical area for the pair and a break here will be a major bearish development. If price can hold here, the focus will be on a rotation higher towards 18.58 and 19.92. To the downside, a slip lower will see 15.41 come into focus.
Source: Tickmill
