What to Expect From American Eagle Earnings

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American Eagle Outfitters Inc. (NYSE: AEO) is scheduled to release its most recent earnings report before the markets open on Wednesday. The consensus estimates are $0.41 in earnings per share (EPS) and $940.94 million in revenue. The fiscal third-quarter of last year reportedly had $0.35 in EPS and revenue of $919.07 million.

In its most recently reported quarter, American Eagle’s revenue rose a modest 3% to $823 million. Comparable store sales rose by the same percentage, but what was impressive was that this was on comparable store sales, which increased 11% in the same quarter a year ago. The trajectory over two years is amazing. And the per-share earnings rose from $0.17 to $0.23.

Part of the success of American Eagle may be discipline, including a lack of overbuilding. American Eagle has 1,000 stores and operates in the United States, Canada, China, the United Kingdom and Mexico. However, much of its activity overseas is based on online sales, which the company says brings in revenue from 81 countries.

This company may benefit from the age of its customers. Younger people tend to be more comfortable shopping from smartphones and tablets. This cuts the need for aggressive brick-and-mortar expansion.

A few analysts weighed in on American Eagle ahead of the earnings report:

  • Wunderlich reiterated a Buy rating with a $22 price target.
  • FBR has a Market Perform rating with a $19 price target.
  • Bluefin Research has a Market Perform rating.
  • BMO Capital Markets has an Outperform rating with a $21 price target.
  • Jefferies has a Buy rating.
  • B. Riley has a Buy rating with a $22 price target.

So far in 2016, American Eagle has Outperformed the broad markets with the stock up nearly 20% in that time.

Shares of American Eagle were trading at $18.55 on Tuesday, with a consensus analyst price target of $19.91 and a 52-week trading range of $12.78 to $19.55.