What to Look for in American Eagle Earnings
American Eagle Outfitters is set to release its fiscal fourth-quarter financial results after the markets close on Wednesday.
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American Eagle Outfitters Inc. (NYSE: AEO) is set to release its fiscal fourth-quarter financial results after the markets close on Wednesday. Thomson Reuters has consensus estimates that call for per-share earnings of $0.42 on $1.12 billion in revenue. The same period from the previous year had $0.36 in earnings per share on revenue of $1.07 billion.
Earlier this company released its sales numbers for the holidays. The company reported fourth-quarter same-store sales in January as up 4% year over year and that the company continues to forecast the quarter’s earnings at $0.40 to $0.42. This was not good enough for investors at the time.
American Eagle CEO Jay Schottenstein commented on the announcement:
Despite a very challenging macro-environment, we had a solid holiday season, driven by positive results in both our brands. The online business was particularly strong, and we leveraged our omni-channel tools to deliver an improved customer experience. I am extremely pleased with the steady progress made in 2015, with expected annual EPS growth of roughly 70%.
Retail stores catering to teens have had a tough year or so as more traditional retailers like American Eagle are losing ground to fast-fashion brands like H&M, Forever 21 and Zara. Warm weather during the final few months of 2015 also stunted sales of winter garb.
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A few analysts weighed in on American Eagle prior to the release of its earnings:
- B. Riley reiterated a Buy rating with a $20 price target.
- BB&T downgraded to a Hold rating from Buy.
- Goldman Sachs lowered its price target to $13 from $15.
- JP Morgan raised its price target to $16 from $15.
So far in 2016, American Eagle has been relatively flat, with the stock only down about 1.5% year to date. Over the past 52 weeks, the stock is up 5%.
Shares of American Eagle were trading down 1.3% at $15.06 on Tuesday, with a consensus analyst price target of $18.25 and a 52-week trading range of $12.78 to $18.49.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
