American Eagle Reports a +37% Increase in Q3 Net Income; +11% Boost in Revenues (AEO)

American Eagle Reports a +37% Increase in Q3 Net Income; +11% Boost in Revenues (AEO)


On Wednesday fashion retailer American Eagle Outfitters (AEO) released its third quarter earnings report that saw a jump in earnings and revenue, beating analysts expectations.

The Pittsburgh, Pennsylvania-based company reported its third quarter net income from continuing operations of 41 cents per share, up +37% from 30 cents per share in the same quarter a year ago. Analysts estimated that the company would earn 39 cents per share.

Third quarter revenue came in at $910 million, up +11% from last year’s third quarter revenue of $819 million. Analysts expected revenue to be $872.95 million.

American Eagle’s third quarter numbers were adjusted due to the sale of 77kids.

Looking forward, AEO sees fiscal year 2012 EPS to be in the range of $1.38 to $1.40, up from the previous outlook of $1.33 to $1.36 per share. Wall Street thinks AEO will earn $1.37 per share.

For the fourth quarter American Eagles believes earnings will be between 54 cents and 56 cents per share, compared to the Wall Street consensus of 55 cents per share.

American Eagles shares were up $1.24, or +6.40%, in premarket trading on Wednesday.

The Bottom Line
Shares of American Eagle Outfitters (AEO) have a 2.27% dividend yield, based on last night’s closing stock price of $19.39. The stock has technical support in the $16-$18 price area. If the shares can firm up, we see overhead resistance around the $22 price level.

American Eagle Outfitters (AEO) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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