It's Showtime for American Eagle Outfitters

Updated

American Eagle Outfitters (NYS: AEO) is expected to report Q4 earnings on March 6. 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's revenues will increase 7.5% and EPS will grow 60.0%.

The average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.56.


Revenue details
Last quarter, American Eagle Outfitters reported revenue of $910.4 million. GAAP reported sales were 11% higher than the prior-year quarter's $819.4 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 $0.41. GAAP EPS of $0.39 for Q3 were 44% higher than the prior-year quarter's $0.27 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 41.6%, 350 basis points better than the prior-year quarter. Operating margin was 14.1%, 290 basis points better than the prior-year quarter. Net margin was 8.6%, 220 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.48 billion. The average EPS estimate is $1.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,142 members out of 2,305 rating the stock outperform, and 163 members rating it underperform. Among 740 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 706 give American Eagle Outfitters a green thumbs-up, and 34 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 $25.85.

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The article It's Showtime 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 position in any of the stocks mentioned. 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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