Under Armour shares sink 14% after guidance cut, reports of federal accounting probe

Under Armour Inc. shares sank 14.2% in Monday premarket trading after the company cut its guidance. The athletic sportswear company also made headlines over the weekend after a report that it is under federal investigation for its accounting practices. Third-quarter net income totaled $102.3 million, or 23 cents per share, up from $75.3 million, or 17 cents per share, last year. Revenue totaled $1.43 billion, down from $1.44 billion in 2018. The FactSet consensus was for earnings 18 cents per share and revenue of $1.41 billion. Under Armour now expects fiscal 2019 revenue to be up 2%, down from previous guidance for 3% to 4% growth. EPS is expected to be on the high-end of its previous range of 33 cents to 34 cents. The FactSet outlook is for revenue of $5.36 billion, up 3.1% from last year, and EPS of 34 cents. Under Armour stock is up 19.6% for the year to date, but down 10.8% over the last 12 months. The S&P 500 index is up 22.3% for the year to date.

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