What Does Wall Street See for American Eagle Outfitters' Q2?

American Eagle Outfitters (NYS: AEO) is expected to report Q2 earnings around Aug. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict American Eagle Outfitters' revenue will increase 5.7% and EPS will improve 50.0%.

The average estimate for revenue is $714.3 million. On the bottom line, the average EPS estimate is $0.15.

Revenue details
Last quarter, American Eagle Outfitters logged revenue of $719.0 million. GAAP reported sales were 18% higher than the prior-year quarter's $609.6 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.22. GAAP EPS of $0.20 for Q1 were 43% higher than the prior-year quarter's $0.14 per share.

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

Recent performance
For the preceding quarter, gross margin was 37.9%, 10 basis points worse than the prior-year quarter. Operating margin was 8.0%, 170 basis points better than the prior-year quarter. Net margin was 5.5%, 90 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $3.35 billion. The average EPS estimate is $1.24.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,184 members out of 2,342 rating the stock outperform, and 158 members rating it underperform. Among 719 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 679 give American Eagle Outfitters a green thumbs-up, and 40 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 $18.60.

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The article What Does Wall Street See for American Eagle Outfitters' Q2? 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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