NEW YORK (TheStreet) -- American Eagle Outfitters (AEO) shares are down 2.86% to $13.95 in trading on Thursday ahead of the apparel retailer's third quarter earnings release after the closing bell today.
Analysts are expecting the company to report third quarter earnings of 21 cents per diluted share on revenue of $845 million.
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Investors are tepid on the the company's chances of an earnings beat following the release of fellow retailer Abercrombie's (ANF) financial results yesterday. Abercrombie lowered its full year EPS outlook to between $1.50 to $1.65 from its previous view of between $2.15 and $2.35.
The company lowered its outlook despite beating analysts third quarter earnings estimates of 41 cents per share by one cent.
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."