Earnings Previews: American Eagle Outfitters, ChargePoint, Okta

A relatively uneventful week for corporate earnings has turned into a bad-news week for a couple of companies. Zoom Video reported big numbers, but investors are looking ahead and not seeing significant growth. Apparel retailer Chico’s FAS also reported sharply higher revenues and profits, but, again, the future is foggy.

Our report on late Tuesday and early Wednesday reports included just two companies: Campbell Soup and CrowdStrike.

Here’s a look at three companies reporting results late Wednesday or before markets open on Thursday.

American Eagle Outfitters

Apparel retailer American Eagle Outfitters Inc. (NYSE: AEO) has seen its share price rise by more than 150% over the past 12 months, including an increase of around 60% through Monday’s close. Since late July, however, the stock is down about 30%, largely due to the resurgence of coronavirus infections. The company operates more than a thousand stores and licenses more than 225 in 28 countries. American Eagle is expected to report results before Thursday’s opening bell.

Of 13 analysts covering the stock, eight rate the shares a Buy or Strong Buy, and the other five rate the stock at Hold. At a recent price of around $30.60, the stock’s upside potential based on a median price target of $42 is about 37.3%. At the high price target of $49, the implied upside is 60%.

Second-quarter 2022 revenue is expected to come in at $1.22 billion, which would  be up 18.3% sequentially and 38% year over year. Adjusted earnings per share (EPS) are forecast to rise by nearly 15% sequentially to $0.55, well above last year’s quarterly loss per share of $0.03. For the full year, analysts expect EPS of $2.17, compared to a loss per share of $0.13 in fiscal 2021, on sales of $5.01 billion, 33% higher year over year.

The stock trades at 15 times expected 2022 EPS, 13.8 times estimated 2023 earnings and 12.7 times estimated 2024 earnings. The stock’s 52-week range is $12.22 to $38.99, and American Eagle pays an annual dividend of $0.72 (yield of 2.21%).

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