Urban Outfitters Earnings: Here’s Why Shares are Down Now

Urban Outfitters Inc. (NASDAQ:URBN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.82%.

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Urban Outfitters Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 107.41% to $0.56 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 17.29% to $857 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Urban Outfitters Inc. reported adjusted EPS income of $0.56 per share. By that measure, the company missed the mean analyst estimate of $0.57. It beat the average revenue estimate of $848.24 million.

Quoting Management: “I congratulate each of our brand and shared service teams for delivering an excellent fourth quarter,” said Chief Executive Officer, Richard A. Hayne. “We entered the year with a plan to invest in initiatives to drive top line growth and improve margins. We succeeded on both fronts especially in the fourth quarter. We will pursue a similar strategy in the current fiscal year as we believe we have only begun to unlock the opportunities ahead of us,” finished Mr. Hayne.

Key Stats (on next page)…

Revenue increased 23.68% from $692.89 million in the previous quarter. EPS increased 40% from $0.40 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.32 and has not changed. For the current year, the average estimate has moved up from a profit of $1.58 to a profit of $1.63 over the last ninety days.

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