This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Market Preview: Beyond the Cliff

Stock quotes in this article: AEO, GMCR, GRPN, SPY, ^GSPC, ^DJI, ^IXIC

Count Sterne Agee among the bulls on American Eagle. The firm, which has a buy rating on the stock with a $27 price target, is expecting in-line results for the quarter and it believes the company did well over the first big shopping weekend of gift-giving season.

"Our holiday checks this weekend suggested AEO sales were off to a good start with promotional levels similar to last year," the firm said. "Under new management the Company has significant top- and bottom-line drivers with inventory management a key focus."

Sterne Agee said it's expecting American Eagle to provide a forecast for earnings of 55 cents a share for its fiscal fourth quarter ending in January, a view that's in line with the current consensus.

"We are projecting comps up 3% against 10% for Q4 LY, with holiday comps last year up 12%," the firm said. "While comps were strong last year, excess inventories led to gross margins under pressure at 35.2%, down 520 bp basis points Y/Y. We project gross margins to rise significantly in Q4 to 41.5%, up 630 bp. Our checks of Black Friday weekend sales suggested a good start to the period with its promotions equal to last year at 40% off through Sunday."

Check out TheStreet's quote page for American Eagle Outfitters for year-to-date share performance, analyst ratings, earnings estimates and much more.

Other companies slated to report their numbers on Wednesday include Coldwater Creek (CWTR), Express Inc. (EXPR), Fresh Market (TFM), Guess? (GES), Jos. A. Bank Clothiers (JOSB), La-Z-Boy (LZB), Movado Group (MOV), New York & Co. (NWY), Pall Corp. (PLL), and TiVo (TIVO).

Wednesday's economic calendar features the Mortgage Bankers Association's weekly application activity index at 7 a.m. ET; new home sales for October at 10 a.m. ET; weekly crude inventories at 10:30 a.m. ET; and the release of the Federal Reserve's beige book survey on economic conditions for October at 2 p.m. ET.

And finally, shares of Green Mountain Coffee Roasters (GMCR) were perking up in Tuesday's late trades after the company blew past Wall Street's expectations for its fiscal fourth-quarter results.

The stock was last quoted at $35.40, up more than 22%, on volume of more than 5 million, according to Nasdaq.com.

Green Mountain reported a non-GAAP profit of $101 million, or 64 cents a share, for the September-ended period on revenue of $946.7 million. The average estimate of analysts polled by Thomson Reuters was for earnings of 48 cents a share in the quarter on revenue of $902.7 million.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs