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.
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