Earnings Preview: Urban Outfitters, Inc. (URBN)

Urban Outfitters, Inc. URBN is currently higher on the session by 0.02%, trading at $32.90. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $0.42 on revenue of $582.90 million. These estimates have risen by $0.03 (+6.67%) over the past 90 days. The Whisper Number for URBN is $0.42. • Guidance The Street is looking for Q4 EPS of $0.52 on revenue of $676.60 million. The full year 2011 estimates are $1.67 per share on revenue of $2.29 billion; FY 2012 is at $1.97 per share on revenues of $2.65 billion. • Technical Picture URBN is currently in the midst of an eight-month slide, falling from a recent high near $41.00; shares are roughly unchanged for the year. As opposed to the beginning of the year, though, is the fact that the 18-day, 50-day, and 200-day moving averages are down down-trending. This indicated that the stock has been out of favor for some time. Shares are currently testing the 20-day. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in May, though implied has begun to diverge for the past six weeks. Currently, HI is at 35% and IV is at 49%. The front month $33.00 straddle is trading at 71.61%; the December $33.00 straddle is trading at 43.42%. Urban Outfitters, Inc. is a lifestyle specialty retail company that operates under the Urban Outfitters, Anthropologie, Free People and Terrain brands. The company also operates a wholesale segment under the Free People and Leifsdottir brands. Its retail stores offer differentiated collections of fashion apparel, accessories and home goods.