Shareholders might have noticed that Urban Outfitters, Inc. (NASDAQ:URBN) filed its yearly result this time last week. The early response was not positive, with shares down 5.8% to US$41.55 in the past week. Revenues of US$5.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$3.05, missing estimates by 7.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Urban Outfitters' 15 analysts are now forecasting revenues of US$5.47b in 2025. This would be a reasonable 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to US$3.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.41b and earnings per share (EPS) of US$3.45 in 2025. So the consensus seems to have become somewhat more optimistic on Urban Outfitters' earnings potential following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.4% to US$44.07. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Urban Outfitters analyst has a price target of US$52.00 per share, while the most pessimistic values it at US$38.60. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Urban Outfitters' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Urban Outfitters'historical trends, as the 6.1% annualised revenue growth to the end of 2025 is roughly in line with the 7.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. It's clear that while Urban Outfitters' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Urban Outfitters' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Urban Outfitters going out to 2027, and you can see them free on our platform here..
We also provide an overview of the Urban Outfitters Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
