How Will American Eagle Outfitters (AEO) Stock React to Q1 Earnings?
NEW YORK (TheStreet) -- American Eagle Outfitters (AEO) - Get Report stock is rising 1.48% to $14.06 in afternoon trading on Monday before the retailer's fiscal 2016 first quarter financial report, due out on Wednesday after the market close.
The Pittsburgh-based apparel and accessories retailer is expected to deliver a year-over-year increase in earnings per share and revenue.
Analysts are forecasting earnings of 18 cents per share on revenue of $732.84 million for the latest quarter.
Last year, American Eagle Outfitters reported earnings of 15 cents per share on revenue of $699.52 million for the fiscal 2015 first quarter.
Same store sales are estimated to be up 4.5% for the quarter, in line with the company's guidance of mid-single digit growth, JPMorgan analysts said in a note released earlier this month.
"After two consecutive years of negative comparable sales trends, AEO is regaining traffic and sales momentum with core customers," analysts explained.
Analysts noted that this momentum could continue in the medium-term, but the company may struggle in the long-term because of growing competition in the retail industry.
Separately, American Eagle Outfitters has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins.
You can view the full analysis from the report here: AEO
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
