Urban Outfitters Inc.URBN is expected to release fourth-quarter fiscal 2016 results on Mar 7. The big question facing investors is, whether this lifestyle specialty retailer will be able to deliver a positive earnings surprise in the quarter to be reported. In the preceding quarter, this Philadelphia, PA-based company posted in line earnings. Let's see how things are shaping up for this announcement.
Likely Earnings Beat in the Cards
Our proven model shows that Urban Outfitters is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 57 cents and the Zacks Consensus Estimate is pegged at 56 cents. So the ensuing +1.79% ESP and the company's Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.
Factors Influencing this Quarter
We expect Urban Outfitters to benefit from new store openings, an increase in direct penetration, growing wholesale operations, eCommerce activities and merchandising improvements. These initiatives may favorably impact results in the quarter to be reported. We also believe that better product execution and effective inventory management will help augment the company's performance.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores Inc. CASY has an Earnings ESP of +10.11% and a Zacks Rank #2 (Buy).
Zumiez, Inc. ZUMZ has an Earnings ESP of +2.08% and a Zacks Rank #2.
Big Lots Inc. BIG has an Earnings ESP of +0.51% and a Zacks Rank #3.