Can Aéropostale Meet These Numbers?

Checking expectations

Seth Jayson
Seth Jayson
Mar 11, 2013 at 12:00AM
Other

Aéropostale (NYSE: ARO) is expected to report Q4 earnings on March 14. 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 Aéropostale's revenues will compress -3.0% and EPS will decrease -50.0%.

The average estimate for revenue is $783.9 million. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, Aéropostale reported revenue of $605.9 million. GAAP reported sales were 1.6% higher than the prior-year quarter's $596.5 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, EPS came in at $0.31. GAAP EPS of $0.31 for Q3 were 3.3% higher than the prior-year quarter's $0.30 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 27.9%, 80 basis points better than the prior-year quarter. Operating margin was 7.0%, 30 basis points better than the prior-year quarter. Net margin was 4.1%, 10 basis points better than the prior-year quarter.

Looking ahead


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The full year's average estimate for revenue is $2.38 billion. The average EPS estimate is $0.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 915 members out of 985 rating the stock outperform, and 70 members rating it underperform. Among 263 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 253 give Aéropostale a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aéropostale is outperform, with an average price target of $17.44.

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