American Eagle Outfitters
The 10-second takeaway
For the quarter ended May 4 (Q1), American Eagle Outfitters met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins were steady, operating margins dropped, net margins dropped.
American Eagle Outfitters tallied revenue of $679.5 million. The 22 analysts polled by S&P Capital IQ expected a top line of $677.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.18. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. Non-GAAP EPS of $0.18 for Q1 were 18% lower than the prior-year quarter's $0.22 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.14 for Q1 were 30% lower than the prior-year quarter's $0.20 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.8%, much about the same as the prior-year quarter. Operating margin was 6.7%, 240 basis points worse than the prior-year quarter. Net margin was 4.1%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $767.0 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $3.55 billion. The average EPS estimate is $1.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,143 members out of 2,298 rating the stock outperform, and 155 members rating it underperform. Among 708 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 680 give American Eagle Outfitters a green thumbs-up, and 28 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 $23.80.
Is American Eagle Outfitters the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add American Eagle Outfitters to My Watchlist.
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 position in any of the stocks mentioned. 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.