American Eagle Outfitters Meets Q3 EPS Expectations; Stock Falls (AEO)

American Eagle Outfitters Meets Q3 EPS Expectations; Stock Falls (AEO)


After the closing bell on Thursday, American Eagle Outfitters (AEO) reported its third quarter results, posting slightly lower revenue and higher adjusted earnings compared to last year’s Q3.

AEO’s Earnings in Brief

  • American Eagle reported third quarter sales of $854.3 million, which is down slightly from last year’s Q3 sales of $857.3 million.
  • Net income for the quarter came in at $9.04 million, or 5 cents per share, which is down from last year’s Q3 net income of $24.9 million, or 13 cents per share.
  • On an adjusted basis, AEO’s EPS came in at 22 cents, which is up from last year’s Q3 EPS of 19 cents.
  • The company’s earnings met analysts’ estimates of 22 cents, while revenues were above the revenue expectation of $845.95 million.

CEO Commentary

AEO’s interim CEO Jay Schottenstein had the following comments: “Consistent with our previous announcement, the third quarter delivered higher margins and 16% adjusted earnings growth over last year, in a highly challenging and competitive marketplace. We managed the business better and were able to reduce markdown rates and control expenses. Our ongoing priority to strengthen our business is reflected in the restructuring activities and efforts to drive a better customer experience through improved merchandising, customer engagement and building omni-channel capabilities.”

AEO’s Dividend

American Eagle paid its last quarterly dividend of 13 cents on October 15. We expect the company to declare its next dividend in the coming days.

Stock Performance

AEO stock was down 41 cents, or 2.97%, in after hours trading. YTD, the stock is down 4.1%.

AEO Dividend Snapshot

As of Market Close on December 4, 2014

BK dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of AEO dividends.

The Bottom Line

American Eagle Outfitters (AEO) is not recommended at this time, holding a DARS™ Rating of 3.0 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.