BALTIMORE - A line of Stephen Curry basketball sneakers and increased demand for its athletic wear helped Under Armour (UA) post better-than-expected financial results in the fourth quarter.
That sent shares of Under Armour soaring by 22 percent by late Thursday afternoon, up $15.33, to $83.91.
Under Armour began selling Curry basketball sneakers last year. The company expanded its deal with Curry, who plays for the Golden State Warriors, through 2024 late last year. Under Armour said Thursday its footwear revenue in the fourth quarter jumped 95 percent to $167 million.
Apparel revenue rose 22 percent to $865 million, helped by higher demand for training, running, golf and basketball gear.
The Baltimore-based company reported net income of $105.6 million, or 48 cents, per share in the fourth quarter, compared with $87.7 million or 40 cents, in the same quarter a year ago.
The results surpassed Wall Street expectations. The average estimate of 20 analysts surveyed by Zacks Investment Research was for earnings of 46 cents per share.
Revenue rose nearly 31 percent to $1.17 billion in the period, also exceeding Street forecasts. Thirteen analysts surveyed by Zacks expected $1.12 billion.