Earnings Preview: American Eagle Outfitters

American Eagle Outfitters AEO is set to give its latest quarterly earnings report on Wednesday, 2024-12-04. Here's what investors need to know before the announcement.

Analysts estimate that American Eagle Outfitters will report an earnings per share (EPS) of $0.46.

American Eagle Outfitters bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.01, leading to a 0.96% drop in the share price the following trading session.

Here's a look at American Eagle Outfitters's past performance and the resulting price change:

Stock Performance

Shares of American Eagle Outfitters were trading at $19.93 as of December 02. Over the last 52-week period, shares are down 1.9%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on American Eagle Outfitters

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on American Eagle Outfitters.

Analysts have given American Eagle Outfitters a total of 3 ratings, with the consensus rating being Neutral. The average one-year price target is $21.67, indicating a potential 8.73% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Victoria's Secret, Boot Barn Holdings and Urban Outfitters, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Victoria's Secret, with an average 1-year price target of $33.0, indicating a potential 65.58% upside.
• Boot Barn Holdings received a Buy consensus from analysts, with an average 1-year price target of $171.56, implying a potential 760.81% upside.
• Analysts currently favor an Neutral trajectory for Urban Outfitters, with an average 1-year price target of $48.11, suggesting a potential 141.39% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Victoria's Secret, Boot Barn Holdings and Urban Outfitters, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

American Eagle Outfitters ranks in the middle among peers for consensus rating. It ranks at the bottom for revenue growth. It is at the top for gross profit. It is in the middle for return on equity.

All You Need to Know About American Eagle Outfitters

American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the vast majority of its revenue from the United States.

Financial Insights: American Eagle Outfitters

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, American Eagle Outfitters showcased positive performance, achieving a revenue growth rate of 7.51% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: American Eagle Outfitters's net margin is impressive, surpassing industry averages. With a net margin of 5.98%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): American Eagle Outfitters's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.48%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): American Eagle Outfitters's ROA stands out, surpassing industry averages. With an impressive ROA of 2.18%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.78.

To track all earnings releases for American Eagle Outfitters visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.