American Eagle Earnings: What To Look For From AEO
Young adult apparel retailer American Eagle Outfitters (NYSE:AEO) will be announcing earnings results tomorrow before market hours. Here's what investors should know.
Last quarter American Eagle reported revenues of $1.30 billion, up 4.9% year on year, beating analyst revenue expectations by 1.6%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates, driven by better-than-expected same-store store sales growth at both American Eagle and Aerie. On the other hand, its gross margin and operating income guidance for the full year, despite being raised, missed analysts' expectations.
Is American Eagle buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting American Eagle's revenue to grow 11.5% year on year to $1.67 billion, improving on the 0.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at American Eagle's peers in the apparel and footwear retail segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Urban Outfitters delivered top-line growth of 7.3% year on year, missing analyst estimates by 1% and Ross Stores reported revenues up 15.5% year on year, exceeding estimates by 3.6%. Ross Stores traded flat on the results, and Urban Outfitters traded down 6.3% on the results,
Read our full analysis of Urban Outfitters's results here and Ross Stores's results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with the stocks up on average 8% over the last month. American Eagle is up 16.1% during the same time, and is heading into the earnings with analyst price target of $23, compared to share price of $24.3.
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