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Urban Outfitters Stock Falls after Its Fiscal 4Q18 Results

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Stock price movement

As of March 8, 2018, Urban Outfitters (URBN) stock had fallen 5% since the release of its fiscal 4Q18 (ended January 31, 2018) results after the market closed on March 6.

Its stock price rose 0.2% on March 7 but fell over 5.2% on March 8. As of March 8, Urban Outfitters stock had risen 0.2% to $35.13 YTD (year-to-date).

In comparison, on a YTD basis, Abercrombie & Fitch (ANF) stock had surged 28.2% to $22.35 as of March 8, whereas American Eagle Outfitters (AEO) stock had fallen 0.9% to $18.36. Gap’s (GPS) stock price had fallen 4.3% to $32.60 as of the same date.

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Urban Outfitters’ sales of $1.09 billion and adjusted EPS (earnings per share) of $0.69 beat analysts’ expectations of $1.08 billion and $0.63 for the quarter. However, due to a one-time charge of $64.7 million on account of the recent US tax reforms, the company’s EPS fell to $0.01 on a reported basis compared to $0.55 in fiscal 4Q17, leading to its stock price fall.

Analysts’ ratings after fiscal 4Q18

Most of the analysts providing recommendations on Urban Outfitters stock have maintained “hold” ratings on its stock. As of March 8, 2018, of the 23 analysts covering the stock, 52% had recommended “holds,” 39% had recommended “buys,” and 9% had recommended “sells.”

Following the company’s results, many analysts revised their price targets for Urban Outfitters. Some of these include BMO, Jefferies, Morgan Stanley, and JPMorgan Chase. BMO raised its price target to $37.00 from its earlier $28.00. Jefferies raised its price target to $43.00 from $40.00, and JPMorgan Chase raised its price target to $42.00 from $38.00. Morgan Stanley raised its price target to $33.00 from $28.00.

Currently, analysts’ 12-month average target price for the company is $38.14, which reflects an 8.6% upside to its price as of March 8, 2018.

In this series on Urban Outfitters’ fiscal 4Q18 results, we’ll discuss the company’s revenue, EPS, and margins in detail.

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