Why American Eagle Outfitters (AEO) Stock Is Gaining Today

NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) are higher by 8.46% to $12.57 at the start of trading on Wednesday, after the company reported second quarter 2014 earnings that came in above analysts' expectations.

The clothing and accessories retailer reported net income of $5.8 million, or three cents per share, while analysts polled by Thomson Reuters expected American Eagle to report breakeven earnings for the quarter.

American Eagle's 2014 second quarter net income declined from the $19.6 million, or 10 cents per share, reported for the 2013 second quarter.
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The company posted a 2% decline in revenue for the most recent quarter to $710.6 million, while analysts' had forecast for $689.9 million in revenue.

Separately, 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 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."

You can view the full analysis from the report here: AEO Ratings Report

AEO Chart AEO data by YCharts

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