Golf Clap for American Eagle Outfitters

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American Eagle Outfitters (NYS: AEO) reported earnings on Aug. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 28 (Q2), American Eagle Outfitters met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.


Gross margins grew, operating margins grew, net margins shrank.

Revenue details
American Eagle Outfitters reported revenue of $739.7 million. The 18 analysts polled by S&P Capital IQ expected to see revenue of $738.7 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $675.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.21. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.09 for Q2 were 10% lower than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.4%, 310 basis points better than the prior-year quarter. Operating margin was 8.4%, 410 basis points better than the prior-year quarter. Net margin was 2.6%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $854.6 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $3.39 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,177 members out of 2,336 rating the stock outperform, and 159 members rating it underperform. Among 716 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 677 give American Eagle Outfitters a green thumbs-up, and 39 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Eagle Outfitters is outperform, with an average price target of $23.07.

If you're invested in retailers like American Eagle Outfitters, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

The article Golf Clap for American Eagle Outfitters originally appeared on Fool.com.

Seth Jayson owned shares of the following at the time of publication: American Eagle Outfitters. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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