NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) - Get Report are up 7.35% to $15.91 in morning trading today after the specialty teen retailer reported fourth quarter results that beat analysts estimates and issued guidance above expectations.

For the fourth quarter, the Pittsburgh-based company reported earnings from continuing operations of 37 cents a shares on revenue of $1.07 billion, surpassing analysts' estimates for earnings of 34 cents and revenue of $1.06 billion.

Sales at comparable locations, including online sales, were flat, but beat the mid-single-digit decline in comparable sales that management forecast.

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"After a tough start to fiscal 2014 ... we achieved a solid fourth quarter, exceeding our expectations. The team executed well through an incredibly challenging macro environment. Improved merchandise assortments, combined with a better customer experience, drove strengthened sales trends, and we successfully reduced promotions," Interim CEO Jay Schottenstein said.

For the first quarter, the company expects earnings between 9 cents to 12 cents a share, above the 7 cents that analysts expected.

Separately, shares of peer company Abercrombie & Fitch (ANF) - Get Report are falling today after the apparel retailer reported its fourth quarter results.

Abercrombie & Fitch reported earnings of $1.15 a share for the fourth quarter, in line with analysts' estimates for the quarter, revenue, however, fell 13.8% year over year to $1.12 billion for the quarter, compared to analysts' estimates of $1.17 billion.

TheStreet Ratings team rates AMERN EAGLE OUTFITTERS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMERN EAGLE OUTFITTERS INC (AEO) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Net operating cash flow has increased to $105.19 million or 27.17% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.79%.
• 36.93% is the gross profit margin for AMERN EAGLE OUTFITTERS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.05% trails the industry average.
• AEO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Despite the fact that AEO's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
• In its most recent trading session, AEO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, AMERN EAGLE OUTFITTERS INC's return on equity significantly trails that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: AEO Ratings Report