Urban Outfitters Inc.
), the retailer of apparel, footwear and accessories, is set to
report its first-quarter fiscal 2015 results on May 19, 2014. Last
quarter, it posted a positive surprise of 7.3%. Let us see how
things are developing for this announcement.
Growth Factors this Quarter
Urban Outfitters' focus on increasing customer count, store
expansion, online and mobile marketing endeavors, and
direct-to-consumer business will act as catalysts. However, adverse
weather conditions and weak product execution might impact the
Our proven model does not conclusively project Urban Outfitters
as likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. This is not the case here as you will see below.
Negative Zacks ESP:
ESP for Urban Outfitters is -3.70%.This is because the Most
Accurate estimate is pegged at 26 cents, while the Zacks Consensus
Estimate stands at 27 cents.
Urban Outfitters' Zacks Rank #3 (Hold) increases the predictive
power of ESP. However, we need to have a positive ESP to be
confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated
stocks) going into an earnings announcement, especially when the
company is witnessing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these to have the right combination of elements to post
an earnings beat:
Lions Gate Entertainment Corp.
), Earnings ESP of +7.50% and a Zacks Rank #1 (Strong Buy).
The Kroger Co.
), Earnings ESP of +0.95% and a Zacks Rank #2 (Buy).
Foot Locker, Inc.
), Earnings ESP of +1.91% and a Zacks Rank #2 (Buy).
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