American Eagle Outfitters Inc. (AEO) May Search Lower Levels

American Eagles Outfitters Inc. AEO, a teen retail company, said Wednesday that its Q1 profit for fiscal 2010 fell to $10.9 million, or 5 cents a share, from $22 million, or 11 cents, a year earlier. Sales in the quarter ended May 1 rose 8% to $659.5 million from $612 million. American Eagles Outfitters Inc. (AEO) forecast a profit excluding some items of 12 cents to 16 cents a share in Q2, reflecting the margin pressure on the business related to weaker business trends early in the quarter. Analysts, on average had estimated American Eagle Outfitters Inc. (AEO) to earn 17 cents a share in the Q1 and 22 cents in the second quarter on an average. The stock, already trading below its 20 day MA of $15.97 and 200 day MA of $16.43, is likely to search for lower levels after a gap-down opening on Wednesday.