Barclays Maintains an 'Overweight' on Urban Outfitters (URBN); 3Q 2011 Earnings Review
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Price: $77.81 +2.11%
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $32.00.
Barclays analyst says, "URBN reported 3Q EPS of $0.33, better than our estimate and consensus of $0.32. The share buyback and Q3 gross margin decline were even greater than we anticipated, but other than the lower tax rate there wasn't much to surprise in the URBN quarter."
"We assumed there would be carryover risk into Q4, thus we need only lower Q4
estimates by another $0.02 today. We're maintaining our 2012 estimate at $1.75 as we believe the 2H/11 gross margin decline creates recovery opportunity in 2012. Further, the large Q3 share repurchase and double-digit square footage growth rate for 2012 add 18-20% earnings growth next year even without any fundamental improvement in the business - which we continue to think is forthcoming. While Anthropologie has yet to demonstrate any improvement in trend, it sounds as though trends in Urban Outfitters picked up since quarter end, the direct-to-consumer business improved sequentially in both brands, and the European business improved for both brands, with Urban Europe above the U.S. and the Anthropologie Europe business turning positive during the quarter."
For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.
Shares of Urban Outfitters, Inc. closed at $26.83 yesterday.
Barclays analyst says, "URBN reported 3Q EPS of $0.33, better than our estimate and consensus of $0.32. The share buyback and Q3 gross margin decline were even greater than we anticipated, but other than the lower tax rate there wasn't much to surprise in the URBN quarter."
"We assumed there would be carryover risk into Q4, thus we need only lower Q4
estimates by another $0.02 today. We're maintaining our 2012 estimate at $1.75 as we believe the 2H/11 gross margin decline creates recovery opportunity in 2012. Further, the large Q3 share repurchase and double-digit square footage growth rate for 2012 add 18-20% earnings growth next year even without any fundamental improvement in the business - which we continue to think is forthcoming. While Anthropologie has yet to demonstrate any improvement in trend, it sounds as though trends in Urban Outfitters picked up since quarter end, the direct-to-consumer business improved sequentially in both brands, and the European business improved for both brands, with Urban Europe above the U.S. and the Anthropologie Europe business turning positive during the quarter."
For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.
Shares of Urban Outfitters, Inc. closed at $26.83 yesterday.
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