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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 American Eagle Outfitters Inc. 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.

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.

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Last month, 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.