What to Look for in Urban Outfitters’ Earnings

November 21, 2016 by Chris Lange

Urban Outfitters Inc. (NASDAQ: URBN) is scheduled to report fiscal third-quarter financial results after markets close on Tuesday. The consensus estimates are calling for $0.44 in earnings per share (EPS) and $869.07 million in revenue. The same period from last year had $0.42 in EPS and $825.26 million in revenue.

Just recently this company 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. At this time, the stock jumped more than 15% and tacked on a 52-week high, just for good measure.

The increase at the top line for Urban Outfitters was also modest, but same-store sales and earnings were strong in its most recently reported quarter. The company owns three brands: Urban Outfitters, Anthropologie and Free People. Revenue across all three grew from $867 million to $890 million. Same-store sales for the entire operation were up 1%, but they rose by 5% at the flagship brand.

Although other retailers may be struggling heading into the fourth-quarter, Urban Outfitters has been cruising.

A few analysts weighed in on Urban Outfitters ahead of the report:

  • Wunderlich has a Buy rating with a $40 price target.
  • Morgan Stanley has an Equal Weight rating with a $39 price target.
  • Citigroup has a Buy rating.
  • Jefferies has a Buy rating with a $45 price target.
  • MKM reiterated a Neutral rating with a $36 price target.
  • Wells Fargo reiterated a Hold rating with a $33 price target.
  • Baird has an Outperform rating with a $38 price target.

So far in 2016, Urban Outfitters has vastly outperformed the broad markets with the stock up 64% in this time.

Shares of Urban Outfitters were last trading at $37.41, with a consensus analyst price target of $37.36 and a 52-week trading range of $20.06 to $40.80.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.