Urban Outfitters Earnings: Here’s Why Investors Like These Results

Urban Outfitters Inc. (NASDAQ:URBN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.88%.

Urban Outfitters Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.43% to $0.51 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Rose 12.16% to $758.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Urban Outfitters Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.48. It missed the average revenue estimate of $768.07 million.

Quoting Management: “I am pleased with the strong results we delivered this quarter,” said Richard A. Hayne, Chief Executive Officer. “They were driven by a favorable customer response to our product offerings, improved merchandise margins, the opening of additional stores, and better creative and marketing initiatives in our direct-to-consumer channel,” finished Mr. Hayne.

Key Stats (on next page)…

Revenue increased 17.02% from $648.18 million in the previous quarter. EPS increased 59.38% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.47. For the current year, the average estimate has moved down from a profit of $1.92 to a profit of $1.91 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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