Urban Outfitters Misses Where it Counts

Urban Outfitters (Nasdaq: URBN  ) reported earnings on Nov. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Urban Outfitters met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Urban Outfitters recorded revenue of $692.9 million. The 29 analysts polled by S&P Capital IQ predicted a top line of $692.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $610.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.40 for Q3 were 21% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.6%, 220 basis points better than the prior-year quarter. Operating margin was 13.5%, 150 basis points better than the prior-year quarter. Net margin was 8.6%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $818.4 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $2.76 billion. The average EPS estimate is $1.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 619 members out of 721 rating the stock outperform, and 102 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 200 give Urban Outfitters a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Urban Outfitters is outperform, with an average price target of $39.02.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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