What to Look for in Urban Outfitters’ Earnings

By Chris Lange Updated Jan 12, 5:33PM EST · Published Nov 21, 2:44PM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What to Look for in Urban Outfitters’ Earnings — © Thinkstock

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.

[nativounit]

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.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.