American Eagle Outfitters (NYSE:AEO) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• American Eagle Outfitters beat quarterly earnings expectations, reporting EPS of $0.14 versus analyst estimates of $0.11. Revenue also came in slightly above forecasts at $1.20 billion versus $1.18 billion expected.
• The stock rose on the news, trading up to $17.97 on Thursday with unusually heavy volume compared with its average trading activity. The company remains well below its 52-week high of $28.46.
• Wall Street remains cautious on AEO, with most analysts rating the stock a Hold and a consensus target price of $22.45. The company also continues paying a quarterly dividend, yielding about 2.8% annually.

American Eagle Outfitters (NYSE:AEO - Get Free Report) announced its quarterly earnings results on Thursday. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.03, FiscalAI reports. American Eagle Outfitters had a net margin of 3.49% and a return on equity of 16.76%. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.18 billion.

American Eagle Outfitters Price Performance

NYSE AEO traded up $0.41 on Thursday, reaching $17.97. 12,514,356 shares of the company's stock traded hands, compared to its average volume of 5,520,990. American Eagle Outfitters has a 12 month low of $9.27 and a 12 month high of $28.46. The stock has a 50-day simple moving average of $17.16 and a 200 day simple moving average of $21.12. The stock has a market cap of $3.01 billion, a PE ratio of 16.04, a P/E/G ratio of 1.22 and a beta of 1.38.

American Eagle Outfitters Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, April 24th. Shareholders of record on Friday, April 10th were given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, April 10th. American Eagle Outfitters's dividend payout ratio (DPR) is presently 44.64%.

Insider Buying and Selling

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,887 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $17.32, for a total transaction of $50,002.84. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Cary D. Mcmillan sold 2,887 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $17.23, for a total transaction of $49,743.01. The SEC filing for this sale provides additional information. 8.95% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. grew its position in American Eagle Outfitters by 10.3% during the fourth quarter. Invesco Ltd. now owns 769,161 shares of the apparel retailer's stock valued at $20,283,000 after acquiring an additional 71,858 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in shares of American Eagle Outfitters by 34.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,207 shares of the apparel retailer's stock worth $559,000 after purchasing an additional 5,441 shares during the last quarter. Mackenzie Financial Corp grew its holdings in shares of American Eagle Outfitters by 757.0% in the fourth quarter. Mackenzie Financial Corp now owns 96,674 shares of the apparel retailer's stock worth $2,575,000 after purchasing an additional 85,394 shares during the last quarter. CacheTech Inc. bought a new position in shares of American Eagle Outfitters in the fourth quarter worth approximately $237,000. Finally, Fuller & Thaler Asset Management Inc. grew its holdings in shares of American Eagle Outfitters by 9.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,952,866 shares of the apparel retailer's stock worth $77,867,000 after purchasing an additional 250,084 shares during the last quarter. 97.33% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on AEO shares. Needham & Company LLC started coverage on shares of American Eagle Outfitters in a research note on Thursday, March 26th. They issued a "hold" rating on the stock. TD Cowen lowered their target price on shares of American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a research note on Monday, May 18th. Wall Street Zen raised shares of American Eagle Outfitters from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 25th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of American Eagle Outfitters in a research note on Wednesday, March 25th. Finally, Barclays raised shares of American Eagle Outfitters from an "underweight" rating to an "equal weight" rating and set a $19.00 target price on the stock in a research note on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $22.45.

About American Eagle Outfitters

American Eagle Outfitters, Inc NYSE: AEO is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company's flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.