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American Eagle Outfitters Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 7, 2017 at 11:37AM

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Just the facts, Fool.

American Eagle Outfitters (NYSE: AEO) reported earnings on Nov. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 27 (Q3), American Eagle Outfitters beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
American Eagle Outfitters recorded revenue of $910.4 million. The 21 analysts polled by S&P Capital IQ looked for revenue of $871.3 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $831.8 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 $0.41. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. 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.

Margin details
For the quarter, gross margin was 41.6%, 450 basis points better than the prior-year quarter. Operating margin was 14.1%, 410 basis points better than the prior-year quarter. Net margin was 8.6%, 230 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $3.57 billion. The average EPS estimate is $1.43.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,158 members out of 2,317 rating the stock outperform, and 159 members rating it underperform. Among 750 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 714 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 $25.91.

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Stocks Mentioned

American Eagle Outfitters, Inc. Stock Quote
American Eagle Outfitters, Inc.
AEO
$13.54 (11.81%) $1.43

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