Young adult apparel retailer American Eagle Outfitters (NYSE: AEO) will be reporting results this Tuesday after market close. Here’s what you need to know.
American Eagle beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $1.28 billion, flat year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
Is American Eagle a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting American Eagle’s revenue to grow 2.5% year on year to $1.32 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Eagle has missed Wall Street’s revenue estimates four times over the last two years.
Looking at American Eagle’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 2.6%, and Gap reported revenues up 3%, topping estimates by 0.8%. Urban Outfitters traded up 13.5% following the results while Gap was also up 8.4%.
Read our full analysis of Urban Outfitters’s results here and Gap’s results here.
There has been positive sentiment among investors in the apparel retailer segment, with share prices up 4% on average over the last month. American Eagle is up 23.4% during the same time and is heading into earnings with an average analyst price target of $16.44 (compared to the current share price of $20.46).
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