American Eagle (AEO) Reports Q1: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2024/05/28 3:01 am EDT

Young adult apparel retailer American Eagle Outfitters (NYSE:AEO) will be reporting earnings tomorrow after market close. Here's what investors should know.

American Eagle met analysts' revenue expectations last quarter, reporting revenues of $1.68 billion, up 12.2% year on year. It was a strong quarter for the company, with a solid beat of analysts' earnings estimate. Looking ahead, management expects revenue to rise by 3% in the full year 2024, falling short of analysts' estimates. However, its forecasted full-year operating income of $455 million easily cleared analysts' expectations of $362 million.

Is American Eagle a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting American Eagle's revenue to grow 6.5% year on year to $1.15 billion, improving from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

American Eagle Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Eagle has only missed Wall Street's revenue estimates once over the last two years, inline with the top-line expectations on average.

Looking at American Eagle's peers in the apparel and footwear retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 7.8%, beating analysts' expectations by 1.8%, and Shoe Carnival reported revenues up 6.8%, topping estimates by 2%. Urban Outfitters traded down 4.5% following the results while Shoe Carnival was up 7.9%.

Read our full analysis of Urban Outfitters's results here and Shoe Carnival's results here.

There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 6.7% on average over the last month. American Eagle is down 6.4% during the same time and is heading into earnings with an average analyst price target of $26.1 (compared to the current share price of $23.25).

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