What's Coming For Urban Outfitters?

Shares of Urban Outfitters, Inc. URBN are up on Monday, in anticipation of the announcement of the company’s first quarter (fiscal 2016) financial results after the market close.

As it can be seen in the chart above, Urban Outfitters’ earnings are relatively cyclical.

Last quarter, the company reported earnings of $0.60 per share on revenue of $1.011 billion. For the first quarter of fiscal 2016, the Street anticipates earnings of $0.30 per share on revenue of $760.36 million, while the crowd projects earnings of $0.31 per share on revenue of $761.55 million.

These figures imply a 15 percent surge in relation to the earnings reported a year ago. For the first quarter of fiscal 2015, the retailer registered earnings of $0.26 per share on revenue of $686.30 million.

The table above includes a history of estimates and actual earnings for the last couple of years. Earnings are expected to come in at their second-lowest point in two years.

Why $0.30 Per Share Could Prove Conservative

In a report published last Thursday, analysts at Wunderlich previewed earnings of $0.30 per share for Urban’s first quarter, on revenue of $774,122 million.

Related Link: Urban Outfitters' Earnings Coming Soon: Here's What Wunderlich Is Watching

The analysts “further argued that a $0.30 earnings per share estimate could prove to be conservative if Urban Outfitters core and Free People register ‘solid’ comps for the quarter. In addition, AURs have continued to ‘materially’ increase during the quarter at a time when the company's inventory wasn't impacted by the West Coast port slowdown.”