Earnings Update: American Eagle Outfitters, Inc. (AEO)

American Eagle Outfitters, Inc. (AEO) stock price moved -1.13% away from 20-Days Simple Moving Average, 0.75% from 50-Days Simple Moving Average and separated 29.27% from 200 Days Simple Moving Average. American Eagle Outfitters, Inc. (AEO) reported loss -9.43% in recent buying and selling session with closing price of $ 18.63. The stock’s traded 14.06 million shares in session while it holds an average volume of 4.34 million shares. The AEO switched 82.11% away from its 52 week minimum and distanced -10.56% from its 52 week peak. The volatility change in the previous week has observed by 6.13% and experienced of 4.44% change in the last month.

American Eagle Outfitters, Inc. (AEO) stated EPS for the 14 weeks ended February 3, 2018 of $0.52, contrast to $0.30 for the 13 weeks ended January 28, 2017. For the same periods, adjusted EPS was $0.44, which excludes $0.08 of tax benefit discussed below. This compares to adjusted EPS of $0.39 last year, which excluded $0.09 of charges. Adjusted EPS for the quarter raised 13% contrast to last year.

For the 53 weeks ended February 3, 2018, the company stated EPS of $1.13, contrast to $1.16 for the 52 weeks ended January 28, 2017. For the same periods, adjusted EPS of $1.16 excludes $0.08 of tax benefit discussed below, and $0.11 of restructuring and related charges. This compares to adjusted EPS of $1.25 last year, which excluded $0.09 of charges. The EPS figures refer to diluted earnings per share.

Fourth Quarter 2017 Results

Total net revenue for the 14 weeks raised 12% to $1.23B contrast to $1.10B for the 13 week period last year. The 53rd week provided an additional $43M of sales.

Consolidated comparable sales for the 14 weeks raised 8% over the comparable 14 week period last year.

Gross profit raised to $425M from $389M. The gross margin rate reduced 80 basis points to 34.6% of revenue contrast to 35.4% last year. The reduction in margin rate reflects higher promotional activity. Additionally, raised shipping costs and higher compensation were offset by rent leverage.

Selling, general and administrative expense of $264M leveraged 60 basis points to 21.5% as a rate to revenue. Raised store salaries,Because of a strong holiday season and the extra week, and higher incentive compensation drove the dollar raise from $242M last year.

Operating income of $116M includes $2M of restructuring charges. Adjusted operating income raised 10% to $118M from $107M last year, deleveraging 20 basis points to 9.6% as a rate to revenue.

Adjusted EPS of $0.44 raised 13% contrast to adjusted EPS of $0.39 last year.

The short ratio in the company’s stock is documented at 3.29 and the short float is around of 8.56%. Beta factor, which measures the riskiness of the security, was registered at 1.05. The Company kept a record of 166.90 million floated shares and 168.48 million shares outstanding. The average true range of the stock is observed at 0.86 and the relative strength index of the stock is recorded at 47.62.

Consensus Recommendation:

Analyst notified mean rating at 2.50 after consensus analysis. (Rating Scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell). Keep in mind that Investors should not rely only on an analyst’s recommendation when taking a decision whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.

American Eagle Outfitters, Inc. (AEO) Stock Profitability Levels:

Net profit margin of the company is seen at 4.50%. Operating profit margin is positioned at 7.20%. Gross profit margin is 36.40%. The larger the gross profit margin, the better for the company. The company made Return on equity of 14.30% in last 12 months period. Return on assets ratio of the Company was 9.50%. Its return on investment ratio was 17.30% in the trailing 12 months period.

The Company’s sales have grown at an average annualized rate of about 3.00% during the past five years. For the past 5 years, The Company’s EPS growth has been nearly 5.30%. Looking out over a next 5-year period, analysts expect the company to see its earnings go up by -1.80%, annually. Analyst established EPS growth expected to grow of 6.30% for this year and EPS growth for next year is likely to attain at 16.65%.

Looking about the past performance history, the company plunged -3.27% for the last five trades and expanded 6.82% in one month period. The stock augmented 15.64% during the past three month period and escalated 46.23% in half year. During the yearly overview it upgraded 27.69% and shown -0.90% year to date performance.

 I am Wayne Parsons and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Email: wayne.parsons@nasdaqexpress.com

Wayne Parsons

 I am Wayne Parsons and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.Email: wayne.parsons@nasdaqexpress.com