Urban Outfitters Inc (NASDAQ:URBN) is scheduled to report second-quarter earnings after the close on Wednesday, Aug. 26. According to Zacks Research, analysts expect earnings of $1.72 per share on revenue of $1.65 billion, representing an 8.9% year-over-year increase in earnings.
Options traders are pricing in an 11.9% post-earnings move, regardless of direction, which is roughly in line with Urban Outfitters stock's average reaction of 11.4% over the last eight quarters. The shares have finished higher after six of those eight reports, including gains of 2.9%, 5.0%, and 13.5% following the last three.
At last glance, URBN was little changed at $74.67. The shares have pulled back since their early-August rally stalled near familiar pressure at the $80 level, now sitting roughly 12% below their Jan. 8 record high of $84.35. The equity will look to break past its year-to-date breakeven level.
Options traders have been unusually bullish heading into the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Urban Outfitters stock's 10-day call/put volume ratio of 3.39 ranks higher than 86% of readings from the past year, while its 50-day call/put volume ratio of 3.16 ranks in the 96th percentile of its annual range.
Short interest is also noteworthy, representing 11.6% of the stock's available float. At URBN's average daily trading volume, it would take short sellers over five days to buy back their bearish bets.
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