Earnings Miss: Urban Outfitters, Inc. Missed EPS By 7.1% And Analysts Are Revising Their Forecasts

Earnings Miss: Urban Outfitters, Inc. Missed EPS By 7.1% And Analysts Are Revising Their Forecasts

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Shareholders might have noticed that Urban Outfitters, Inc. (NASDAQ:URBN) filed its annual result this time last week. The early response was not positive, with shares down 5.8% to US$41.55 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$5.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.1% to hit US$3.05 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Urban Outfitters

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NasdaqGS:URBN Earnings and Revenue Growth March 1st 2024

Taking into account the latest results, the most recent consensus for Urban Outfitters from 15 analysts is for revenues of US$5.47b in 2025. If met, it would imply a modest 6.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 15% to US$3.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.41b and earnings per share (EPS) of US$3.45 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.4% to US$44.07. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Urban Outfitters, with the most bullish analyst valuing it at US$52.00 and the most bearish at US$38.60 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.1% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.2% per year. It's clear that while Urban Outfitters' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.