What Analysts Are Saying About American Eagle After Earnings
Weak guidance offset American Eagle Outfitters solid fiscal third-quarter financial results, and the reaction by analysts was mixed.
When American Eagle Outfitters Inc. (NYSE: AEO) reported its fiscal third-quarter financial results Wednesday morning, the results were favorable. Unfortunately, the company was weighed down by its forward guidance, initially sending shares down about 11%.
24/7 Wall St. has included some highlights from the earnings report, as well as what a few analysts are saying after the fact.
The company posted $0.41 in earnings per share (EPS) and $940.6 million in revenue. Consensus estimates from Thomson Reuters had called for $0.41 in EPS and revenue of $940.94 million. In the same period of last year, the retailer reported EPS of $0.35 and $919.07 million in revenue.
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Consolidated comparable sales increased 2%, following a 9% increase last year.
During the quarter, the company opened four AE stores, six aerie stores and one Tailgate store. In the same period, three AE stores were closed.
In terms of the outlook for the fiscal fourth-quarter, the company expects EPS to be in the range of $0.37 to $0.39. The consensus estimates were $0.45 in EPS and $1.14 billion in revenue.
On the books, American Eagle cash and cash equivalents totaled $292 million, compared to $363 million last year. Lower cash was the result of $212 million in share buybacks in the fourth quarter last year. In addition, the company returned $92 million in cash dividends and spent $152 million in capital expenditures over the past year.
A few analysts weighed in on American Eagle after earnings were reported:
- BMO Capital Markets has a Buy rating with a $21 price target.
- Cowen has a Buy rating with a $19 price target.
- Stifel has a Buy rating and lowered its price target to $20 from $22.
- RBC Capital Markets has an Outperform rating and lowered its target to $20 from $21.
- B Riley reiterated a Buy rating with a $22 price target.
- Tesley Advisory Group has a Market Perform rating with a $19 price target.
- FBR has a Market Perform rating with a $17 price target.
Shares closed Friday at $16.17, with a consensus analyst price target of $19.05 and a 52-week trading range of $12.78 to $19.55.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
