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.
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 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.
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.
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.
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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