Shares of Under Armour (UA) are surging after the company's first quarter results surpassed analysts' consensus estimates and the athletic apparel maker raised its fiscal 2016 guidance.

WHAT'S NEW: Before the market open, Under Armour reported Q1 earnings per share of 4c and revenue of $1.05B, topping analysts' consensus estimates of 2c and $1.02B, respectively. During the first quarter, wholesale net revenues grew 28% year-over-year to $744M compared to $579M in the prior year's period, while Direct-to-Consumer net revenues grew 33% year-over-year to $266M compared to $200M in the prior year's period. The company said North America net revenues for Q1 grew 26% year-over-year, or 27% on a currency neutral basis, and international net revenues, which represented 14% of total net revenues for Q1, grew 56% year-over-year, or 65% on a currency neutral basis. Gross margin for Q1 was 45.9% compared with 46.9% in the prior year's period, primarily reflecting negative impacts of approximately 100 basis points from higher liquidations and approximately 70 basis points from foreign currency exchange rates, partially offset by approximately 60 basis points from improved product cost margins.

INCREASED GUIDANCE: Based on current visibility, Under Armour raised its FY16 operating income view to $503M-$507M from approximately $503M, representing growth of 23%-24% over 2015. The company also raised its FY16 revenue outlook to approximately $5B from approximately $4.95B, compared to the consensus of $4.96B, representing growth of 26% over 2015. Looking ahead to the second quarter, Under Armour sees revenue growth in the "high twenties," compared to the consensus of $991.22M, Q2 operating income up 25%-30% to $40M-$42M and Q2 gross margins "relatively flat." Management said during its earnings conference call that the company expects every quarter going forward to top $1B in revenues and said it will release a new Stephen Curry sneaker on July 1.

PRICE ACTION: In early afternoon trading, Under Armour rose $3.37, or about 7.67%, to $47.32 on nearly three times its average daily trading volume. Despite today's advance, the shares have lost approximately 43% over the past 12 months.

OTHERS TO WATCH: Other athletic apparel makers include Nike (NKE), up about 1%, Adidas (ADDYY), down 1%, and Lululemon (LULU), down 1%.