American Eagle Outfitters (NYSE:AEO)
American Eagle Outfitters is set to report its fiscal third quarter 2016 results this morning, Wednesday November 30, 2016 before the market open. The street consensus is for earnings of $0.41 a share on revenues of $940.66 million. Let’s take a look at the latest analyst comments heading into the print.
AEO Analyst Opinion
Analysts at Wunderlich Securities had the following comments leading up to the AEO earnings release.
We are reiterating our slightly-above-consensus 3Q top- and bottom-line projections with American Eagle (AEO) reporting results on Wednesday morning before the open. We believe, after disappointing results from a number of key teen players, that American Eagle remains the teen player to own, with a focus on denim and men’s which we believe positions the company for continued market share gains and further upside.
We also believe there remains compelling growth opportunities at the Aerie chain and in international markets which can further drive margins. As such, as with AEO trading at 12.7x our FY18 EPS, we believe the risk/reward in the name remains impressive and we reiterate our Buy rating. Believe there is upside to 3Q Street consensus of EPS of $0.41, comps of +2.8% and revenue of $940 million. We believe American Eagle’s emphasis on denim for back-to-school was a key winning proposition.
Further, we view the company’s emphasis on men’s as a key positive and we believe the bralette business remained very strong at Aerie, which should drive top-line upside, Further, we view inventories and discounting as remaining low.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (AEO Inc.), incorporated on January 26, 1972, is a specialty retailer, operating over 1,000 retail stores and online at ae.com and aerie.com in the United States and internationally. The Company operates in the segment of American Eagle Outfitters Brand (AEO Brand) retail stores, Aerie by American Eagle Outfitters retail stores and AEO Direct. The Company offers an assortment of apparel and accessories for men and women under the American Eagle Outfitters brand, and intimates, apparel and personal care products for women under the Aerie brand.
It also has license agreements with third parties to operate American Eagle Outfitters and Aerie stores throughout Asia, Europe, Latin America and the Middle East. The Company operates over 950 American Eagle Outfitters stores and approximately 100 Aerie stand-alone stores. It has store base in approximately 140 locations in over 20 countries and its online business ships to approximately 80 countries around the world.