American Eagle Outfitters (NYSE: 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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