Urban Outfitters Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Urban Outfitters, Inc. (NASDAQ:URBN) will unveil its latest earnings on Monday, November 14, 2011. Urban Outfitters is engaged in the general consumer product retail and wholesale business, selling to customers through various channels including retail stores, catalogs and web sites.

Urban Outfitters, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 34 cents per share, a decline of 20.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 44 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 35 cents during the last month. Analysts are projecting profit to rise by 12.5% versus last year to $1.40.

Past Earnings Performance: Last quarter, the company topped expectations by 3 cents, coming in at net income of 35 cents per share versus a mean estimate of profit of 32 cents per share. This followed two straight quarters of missing estimates.

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Wall St. Revenue Expectations: On average, analysts predict $629.2 million in revenue this quarter, a rise of 9.7% from the year ago quarter. Analysts are forecasting total revenue of $2.51 billion for the year, a rise of 10.6% from last year’s revenue of $2.27 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, three rating it as a sell and nine rating it as a hold.

A Look Back: In the second quarter, profit fell 20.9% to $56.7 million (35 cents a share) from $71.7 million (42 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 10.3% to $609.2 million from $552.2 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 9.2% in the first quarter from the year earlier, climbed 13.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 13.4% in the third quarter of the last fiscal year.

The company has seen net income fall in each of the last three quarters. Net income fell 27.1% in the first quarter and 3.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Abercrombie & Fitch Co. (NYSE:ANF), The Gap Inc. (NYSE:GPS), American Eagle Outfitters (NYSE:AEO), The Buckle, Inc. (NYSE:BKE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), Zumiez Inc. (NASDAQ:ZUMZ), Aeropostale, Inc. (NYSE:ARO), The Wet Seal, Inc. (NASDAQ:WTSLA), Stein Mart, Inc. (NASDAQ:SMRT), and The Walking Co. Hldgs., Inc. (WALK).

Stock Price Performance: During October 11, 2011 to November 8, 2011, the stock price had risen $2.80 (11.9%) from $23.54 to $26.34. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 14, 2011 when shares rose for nine-straight days, rising 12.4% (+$4.18) over that span. It saw one of its worst periods between August 31, 2011 and September 9, 2011 when shares fell for seven-straight days, falling 6.2% (-$1.62) over that span. Shares are down $9.47 (-26.4%) year to date.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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