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American Eagle Outfitters Profit Matches Analyst Forecast

In the quarter ended May 1, net income registered 46 cents per share, swinging from a loss in last year's pandemic-addled quarter.
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Shares of American Eagle Outfitters  (AEO) - Get Report fell in after-hours trading Wednesday, as profit in the clothes retailer’s latest earnings report failed to beat expectations.

In the fiscal 2021 first quarter ended May 1, net income registered $95.463 million, or 46 cents per share, swinging from a loss of $257.162 million, or $1.54 a share, in the year-earlier, pandemic-addled quarter.

The FactSet analyst consensus called for profit of 46 cents a share in the latest quarter.

Revenue totaled $1.03 billion, up from 552 million a year earlier and barely topping analysts’ forecast of $1.02 billion.

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American Eagle recently stood at $34.68 in after-hours trading, down 1.34%. It has soared 90% in the past six months amid optimism for vaccines and economic recovery.

Last month, TheStreet.com founder Jim Cramer explained why he likes American Eagle.

Also in April, several analysts to raise their price targets on the company.

B. Riley has a buy rating on the stock, and lifted its price target to $40 from $32. The company’s April business update showed it’s cutting back on clearance and promotions, B. Riley analysts said, according to Bloomberg.

Jefferies has a buy rating and a $39 price target. Pent-up demand in the apparel sector, fiscal stimulus and a fresh fashion cycle will help American Eagle, Jefferies said.

RBC has an outperform rating and raised its price target to $37 from $33. The mid-teens sales growth that the company is enjoying compared to 2019 counts “among the strongest top-line results we’ve seen out of AEO over the past several years,” RBC said.