American Eagle Outfitters Misses Where It Counts
American Eagle Outfitters (NYS: AEO) reported earnings on March 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), American Eagle Outfitters met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins shrank across the board.
American Eagle Outfitters notched revenue of $1.04 billion. The 19 analysts polled by S&P Capital IQ wanted to see net sales of $1.05 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $916.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.35. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share on the same basis. GAAP EPS of $0.26 for Q4 were 42% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 530 basis points worse than the prior-year quarter. Operating margin was 9.7%, 520 basis points worse than the prior-year quarter. Net margin was 4.9%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $657.4 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $3.33 billion. The average EPS estimate is $1.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,211 members out of 2,367 rating the stock outperform, and 156 members rating it underperform. Among 732 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 696 give American Eagle Outfitters a green thumbs-up, and 36 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 $15.88.
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At the time this article was published 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. 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.