American Eagle Outfitters
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.
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 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.
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.
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.
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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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 of Motley 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. Motley Fool newsletter services recommend American Eagle Outfitters. 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.