Under Armour Inc. shares surged 13% in premarket trade Tuesday, after the company posted stronger-than-expected revenue for the fourth quarter. The company said it had a net loss of $87.9 million, or 20 cents a share, in the quarter, after earnings of $103.2 million, or 23 cents a share, in the year-earlier period. Adjusting for a one-time tax charge and restructuring costs, the company had breakeven EPS, matching the FactSet consensus. Revenue came to $1.4 billion, beating the FactSet consensus of $1.3 billion. The company said it recognized pretax costs relating to a restructuring plan announced last August of $37 million. The company is now expecting to book restructuring charges of $110 to $130 million in 2018 after identifying further measures. It expects to generate at least $75 million in annual savings from the restructuring in 2019 and beyond. For 2018, the company is expecting revenue to rise at a low single-digit percentage rate, and for adjusted EPS to range from 14 cents to 19 cents. The current FactSet consensus is for 2018 EPS of 21 cents. Shares have fallen 29% in the last 12 months, while the S&P 500 has gained 14%.
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