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
Jos. A. Bank Clothiers
New York & Co.
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
beige book survey on economic conditions for October at 2 p.m. ET.
And finally, shares of
Green Mountain Coffee Roasters
(GMCR - Get Report)
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
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
was for earnings of 48 cents a share in the quarter on revenue of $902.7 million.