Retail

How Analysts Are Rating Urban Outfitters After Earnings

Chris Lange

Published: August 17, 2016 3:01 pm

Last Updated: January 13, 2020 4:31 am

Urban Outfitters Inc. (NASDAQ: URBN) reported its fiscal-second quarter financial results after the markets closed on Tuesday. Overall results beat estimates on both the top and bottom line. Judging by the investor reaction to this beat and if the company can continue to perform at this level, it could very well push Urban Outfitters stock to new highs as the year goes on.

24/7 Wall St. has included some of the highlights from the earnings report as well as what analysts are saying after the fact.

The company said that it had $0.66 in earnings per share (EPS) on $890 million in revenue, which compares to the consensus estimates from Thomson Reuters that called for $0.56 in EPS and $886.84 million in revenue. The same period from the previous year had $0.52 in EPS and $867.46 million in revenue.

During this quarter comparable sales in the retail segment, including the comparable direct-to-consumer channel, increased by 1%. Comps increased 5% in the Urban Outfitters segment, while this was flat at Free People, and decreased 3% in the Anthropologie Group segment. The wholesale segment net sales increased by 4%.

Richard A. Hayne, CEO of Urban Outfitters, commented on earnings:

I am pleased to announce our teams delivered record second quarter sales and earnings per share. These results were driven by a positive Retail segment ‘comp’ and substantial improvement in merchandise margins.

After earnings were reported analysts completely poured into this stock:

• Baird has an Outperform rating and raised its price target to $38 from $33.
• Cowen has a Market Perform rating and upped its price target to $37 from $28.
• Deutsche Bank raised its price target to $37 from $32.
• Evercore ISI has a Buy rating and increased its price target to $45 from $33.
• FBR has a Market Perform rating and raised its target to $31 from $29.
• Goldman Sachs has a Buy rating and raised its price target to $33 from $29.
• Jefferies has a Buy rating and upped its price target to $40 from $38.
• Mizuho has a Neutral rating and raised its price target to $32 from $28.
• Nomura raised its price target to $33 from $30 while keeping a Neutral rating.
• RBC has a Sector Perform rating and raised its target to $34 from $29.
• Stifel has a Buy rating and increased its price target to $40 from $35.
• SunTrust Robinson has a Buy rating and raised its target to $39 from $34.
• UBS has a Neutral rating and raised its price target to $36 from $30.
• Wedbush maintained a Neutral rating and raised its price target to $34 from $29.
• BMO has a Market Perform rating and increased its price target to $34.
• Wunderlich Securities has a Hold rating and raised its target to $31 from $26.

Shares of Urban Outfitters were last trading up 16.5% at $36.39, with a consensus analyst price target of $31.77 and a 52-week trading range of $19.26 to $37.16. The high was posted earlier Wednesday.