What to Expect From Urban Outfitters Earnings
Urban Outfitters will report its third-quarter results Monday after the U.S. markets close.
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Urban Outfitters Inc. (NASDAQ: URBN) will report its third-quarter results Monday after the market close. Thomson Reuters has consensus estimates of $0.41 in earnings per share and $813.05 million in revenue. In its third quarter from the previous year Urban Outfitters had $0.47 in earnings per share and revenue of $774.05 million.
In late September, Urban Outfitters announced at its analyst day that its goal by 2020 was to double revenue. The question to ask is whether that is achievable, as sales growth is expected to be only about 8.4% in 2014 and then 10% in 2015. Also, Urban Outfitters issued an earnings warning on October 16 that fourth-quarter profits may be hurt by lower-than-expected sales. It also mentioned that the third-quarter gross profit margin may narrow at a rate that was more than in the first half of the year.
In mid-October, Urban Outfitters stock was down about 12% after the retailer lowered its forecast. So far it has been downgraded to Equal Weight from Overweight at Morgan Stanley and to Neutral by Goldman Sachs. At the same time, Nomura reiterated a Neutral rating and lowered the price target to $32 from $39.
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On the chart, Urban Outfitters’ moving averages seem to be irrelevant to where the stock has been trading on negative news and trends. Currently, the 50-day moving average is $34.14 and the 200-day moving average is $35.36, versus a share price above $31.
Shares of Urban Outfitters were up about 1% at $31.13 in Monday morning trading. The consensus analyst price target is $37.10, and the 52-week trading range is $29.11 to $40.67. The market cap is more than $4 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
