Will Urban Outfitters (URBN) Q2 Earnings Miss Estimates? - Analyst Blog

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Urban Outfitters Inc. ( URBN ), the specialty retailer of fashion apparel and accessories, footwear, home décor and gifts products, is slated to report second-quarter fiscal 2015 results on Aug 18. In the last quarter, it posted a negative surprise of 3.7%. Let's see how things are shaping up for this announcement.

Factors Influencing This Quarter

Urban Outfitters is concentrating on store openings, growing wholesale operations, technology enhancements and merchandising improvements. However, fashion obsolescence remains the key concern for the business model, which includes a sustained focus on product and design innovation. Moreover, the company's expansion in regions where it already has a presence could cannibalize its sales performance and lower traffic count at its existing stores in the area.


Earnings Whispers

Our proven model does not conclusively show that Urban Outfitters is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.

Zacks ESP: Earnings ESP for Urban Outfitters is -2.04%. This is because the Most Accurate estimate is pegged at 48 cents, while the Zacks Consensus Estimate stands at 49 cents.

Zacks Rank: Urban Outfitters carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, the company's ESP of -2.04% makes surprise prediction difficult.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements:

Chipotle Mexican Grill, Inc. ( CMG ) has an Earnings ESP of +0.79% and a Zacks Rank #1 (Strong Buy).

Abercrombie & Fitch Co. ( ANF ) has an Earnings ESP of +20.00% and a Zacks Rank #3.

GameStop Corp. ( GME ) has an Earnings ESP of +10.53% and a Zacks Rank #3.


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CHIPOTLE MEXICN (CMG): Free Stock Analysis Report

ABERCROMBIE (ANF): Free Stock Analysis Report

GAMESTOP CORP (GME): Free Stock Analysis Report

URBAN OUTFITTER (URBN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CMG , ANF , GME , URBN



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