Please ensure Javascript is enabled for purposes of website accessibility

Does The Street Have Urban Outfitters Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 1:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

Urban Outfitters (Nasdaq: URBN) is expected to report Q1 earnings around May 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Urban Outfitters's revenues will grow 15.1% and EPS will grow 26.1%.

The average estimate for revenue is $655.1 million. On the bottom line, the average EPS estimate is $0.29.

Revenue details
Last quarter, Urban Outfitters tallied revenue of $856.8 million. GAAP reported sales were 17% higher than the prior-year quarter's $730.6 million.

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

EPS details
Last quarter, EPS came in at $0.56. GAAP EPS of $0.56 for Q4 were 107% higher than the prior-year quarter's $0.27 per share.

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

Recent performance
For the preceding quarter, gross margin was 36.6%, 650 basis points better than the prior-year quarter. Operating margin was 15.4%, 660 basis points better than the prior-year quarter. Net margin was 9.6%, 420 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.16 billion. The average EPS estimate is $1.93.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 623 members out of 724 rating the stock outperform, and 101 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Urban Outfitters a green thumbs-up, and 20 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 $44.18.

Is Urban Outfitters the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

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 position in any of the stocks mentioned. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Urban Outfitters, Inc. Stock Quote
Urban Outfitters, Inc.
URBN
$20.19 (2.75%) $0.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.