Benzinga | Mar 1, 2021 10:21AM EST

Urban Outfitters's Earnings Outlook

On Tuesday, March 02, Urban Outfitters (NASDAQ:URBN) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Urban Outfitters earnings will be near $0.28 per share on sales of $1.10 billion, according to analysts. In the same quarter last year, Urban Outfitters posted EPS of $0.5 on sales of $1.17 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 44.0% decrease in the company's earnings. Sales would be down 5.95% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.44 -0.40 -0.20 0.63EPS Actual 0.78 0.35 -1.27 0.50Revenue Estimate 924.23 M 672.63 M 693.55 M 1.17 BRevenue Actual 969.61 M 803.27 M 588.48 M 1.17 B

Stock Performance

Shares of Urban Outfitters were trading at $33.9 as of February 26. Over the last 52-week period, shares are up 49.52%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Urban Outfitters is scheduled to hold the call at 17:00:00 ET and can be accessed here.