Under Armour's Q2 Earnings: What To Watch For

Under Armour Inc (NYSE: UA) is set to release its Q2 earnings Tuesday before the market opens. Analyst estimates are looking for revenue to come in slightly over the $1 billion mark and EPS at $0.01 per share vs $0.04.

Under Armour has delivered over 20 percent top-line growth for a remarkable 24 consecutive quarters.

Investors will unquestionably be looking for Under Armour to continue this streak with its upcoming earnings, as missing this mark could certainly impact the stock in the short term.

Related Link: Vetr Thinks Under Armour's Future Is Bright

Key Segments To Watch In Q2

• Footwear Sales Growth
• Women's Apparel Sales Figures
• International Expansion Growth
• Curry 2, 2.5 Shoe Line Demand; Potential Future Models Released
• Full-Year Guidance

While Under Armour's women's apparel segment has been showing negative growth, these figures could likely be offset by Under Armour's rapidly growing footwear business, as well as international expansion the company has rolled out.

Analysts at Canaccord Genuity are very bullish on the future prospects of Under Armour, and have a Buy rating with a price target of $65, representing a 50 percent upside.

"With the Sports Authority sales impact already embedded in the stock, we believe the risk/reward for Under Armour is favorable going into the second half of 2016 and 2017 as gross [profit] margins rebound, inventory normalizes, and sales comparisons ease," said Camilo Lyon of Canaccord Genuity.

Under Armour, is coming off their "Chef" Curry 2 Low release, which sold well despite getting heavily criticized for their style on the Internet. The company has received a similar reaction with its latest Curry release, a casual off-the-court shoe called the Curry "Lux."

If the new model does in fact sell well amid all the negativity the product is receiving, it likely indicates that the bears' opinions are irrelevant from a sales perspective, as Under Armour continues to exceed expectations.

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