American Eagle Outfitters (NYSE: 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.
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