American Eagle Outfitters (AEO) Shares Pop; Here’s Why

American Eagle's Earnings Top Wall Street Expectations; Shares Soar 6%


Investors are pleased with American Eagle Outfitters (NYSE:AEO) second-quarter earnings results, sending shares rising nearly 6% in Wednesday’s trading session. Specifically, the fashion giant’s 2Q revenue increased 3 percent to $845 million, topping consensus estimates of $824 million. In addition, the company’s EPS of $0.19 beat Wall Street’s estimate of 16 cents. Looking forward, the company expects third quarter EPS to be approximately $0.36 to $0.38.

“In the second quarter, we achieved sales and earnings above our expectations in a challenging retail environment. Sales trends improved and I’m proud of the continued growth in jeans, bottoms, women’s apparel and Aerie, with encouraging signs in men’s tops beginning to emerge. Our brands are strong and we have significant opportunity for further growth. I’m optimistic as we enter the second half of the year, and we remain focused on delivering product innovation, strengthening customer engagement and improving profit flow-through.”

On the ratings front, AEO has been the subject of a number of recent research reports. In a report issued on August 15, FBR analyst Susan Anderson upgraded to Buy. On August 8, BMO’s John Morris reiterated a Buy rating on the stock and has a price target of $15.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Susan Anderson and John Morris have a yearly average loss of 1.0% and 4.7% respectively. Anderson has a success rate of 47% and is ranked #3615 out of 4611 analysts, while Morris has a success rate of 32% and is ranked #4077.

 

American Eagle Outfitters, Inc. engages in the retail of clothing, accessories, and personal care products. It operates through the American Eagle Outfitters and Aerie brands. 

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