Urban Outfitters, Inc. (NASDAQ:URBN) Quarterly Earnings Preview

• Urban Outfitters is expected to surpass earnings estimates with an EPS of $0.86 and projected revenue of $1.34 billion.
• The retail sector is projected to grow by 5.3% year-over-year for the third quarter of 2024.
• Urban Outfitters showcases a strong financial position with a P/E ratio of 11.70, a price-to-sales ratio of 0.68, and a low debt-to-equity ratio of 0.10.

Urban Outfitters, Inc. (NASDAQ:URBN) is a well-known retail company that operates a range of brands, including Anthropologie, Free People, and its namesake Urban Outfitters. The company is set to release its quarterly earnings on November 26, 2024, with Wall Street analysts estimating an earnings per share (EPS) of $0.86 and projected revenue of approximately $1.34 billion.

Urban Outfitters is expected to surpass earnings estimates this season, alongside other retailers like Abercrombie & Fitch, Casey's General Stores, and Dollar Tree. These companies are focusing on competitive pricing and product innovation, which may lead to increased foot traffic and improved conversion rates. The retail sector is projected to grow by 5.3% year-over-year for the third quarter of 2024, following a 4.4% increase in the previous season.

Despite an anticipated year-over-year decline in earnings, Urban Outfitters is projected to report higher revenues for the quarter ending October 2024. The consensus EPS estimate has been revised upward by 1.6% over the past 30 days, indicating a positive reevaluation by analysts. This trend in earnings estimate revisions often predicts short-term stock price movements, reflecting potential investor actions.

Urban Outfitters has a price-to-earnings (P/E) ratio of approximately 11.70, indicating the market's valuation of its earnings. The company's price-to-sales ratio stands at about 0.68, suggesting a relatively low market valuation compared to its revenue. With an enterprise value to sales ratio of 0.84, Urban Outfitters is valued slightly higher when considering its debt and cash.

The company's financial health is further supported by a low debt-to-equity ratio of 0.10, indicating conservative use of debt in its capital structure. Additionally, the current ratio is 1.46, suggesting that Urban Outfitters has a healthy level of liquidity to cover its short-term liabilities. These metrics highlight the company's strong financial position ahead of its earnings release.