Zacks Research Brokers Increase Earnings Estimates for AEO

Key Points

• Zacks Research raised American Eagle Outfitters’ FY2027 EPS estimate to $2.24 from $1.76, above the current consensus of $2.17, while maintaining a “Strong Buy” rating.
• American Eagle reported quarterly EPS of $0.79, beating estimates of $0.22, as revenue reached $1.38 billion and increased 7.5% year over year.
• Despite the earnings optimism, the broader analyst consensus remains “Hold,” with an average price target of $19.36 versus the stock’s $16.11 opening price; the company also declared a quarterly dividend of $0.125 per share.

American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) - Investment analysts at Zacks Research raised their FY2027 earnings estimates for American Eagle Outfitters in a research note issued on Wednesday, September 23rd. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings of $2.24 per share for the year, up from their previous estimate of $1.76. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for American Eagle Outfitters' current full-year earnings is $2.17 per share. Zacks Research also issued estimates for American Eagle Outfitters' Q2 2029 earnings at $0.61 EPS.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 EPS for the quarter, beating the consensus estimate of $0.22 by $0.57. The firm had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.37 billion. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 23.63%. The business's quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the firm earned $0.45 EPS.

Other equities analysts have also recently issued reports about the company. Barclays reduced their target price on American Eagle Outfitters from $17.00 to $15.00 and set an "equal weight" rating for the company in a research report on Thursday, September 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of American Eagle Outfitters in a research report on Thursday, August 27th. Citigroup cut their price objective on American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, June 1st. Wall Street Zen upgraded shares of American Eagle Outfitters from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Finally, Telsey Advisory Group lowered their target price on shares of American Eagle Outfitters from $20.00 to $18.00 and set a "market perform" rating on the stock in a research note on Thursday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $19.36.

American Eagle Outfitters Trading Up 1.2%

American Eagle Outfitters stock opened at $16.11 on Friday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.62 and a current ratio of 1.59. American Eagle Outfitters has a fifty-two week low of $14.06 and a fifty-two week high of $28.46. The stock has a market cap of $2.70 billion, a P/E ratio of 8.22, a PEG ratio of 3.75 and a beta of 1.33. The firm's fifty day moving average price is $16.71 and its 200-day moving average price is $17.04.

Hedge Funds Weigh In On American Eagle Outfitters

A number of large investors have recently added to or reduced their stakes in the business. Nykredit A S purchased a new position in shares of American Eagle Outfitters in the second quarter worth about $33,253,000. Parkside Financial Bank & Trust boosted its holdings in American Eagle Outfitters by 772.7% during the 2nd quarter. Parkside Financial Bank & Trust now owns 3,997 shares of the apparel retailer's stock valued at $69,000 after acquiring an additional 3,539 shares during the period. Corient Private Wealth LP bought a new position in American Eagle Outfitters during the 2nd quarter worth approximately $2,820,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in American Eagle Outfitters during the 2nd quarter worth approximately $303,000. Finally, Legacy Financial Advisors Inc. purchased a new position in American Eagle Outfitters in the 2nd quarter worth approximately $347,000. Hedge funds and other institutional investors own 97.33% of the company's stock.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director David M. Sable sold 5,779 shares of the stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the transaction, the director directly owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Cary McMillan sold 2,892 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total transaction of $48,498.84. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 11,563 shares of company stock valued at $196,599. Corporate insiders own 8.95% of the company's stock.

American Eagle Outfitters Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Friday, October 9th will be given a dividend of $0.1250 per share. The ex-dividend date is Friday, October 9th. This represents a $0.50 annualized dividend and a dividend yield of 3.1%. American Eagle Outfitters's dividend payout ratio is 25.51%.

American Eagle Outfitters News Roundup

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: American Eagle’s denim momentum is reportedly improving as shoppers respond to new fits. The company is also adjusting its product assortment and inventory strategy to support broader category growth, which could help revive women’s sales. Can American Eagle's New Denim Fits Help Revive Women's Sales?
• Positive Sentiment: Zacks identifies AEO as a top-ranked value stock, potentially attracting investors given its approximately 8 times price-to-earnings ratio and depressed share price relative to its 52-week range. American Eagle Outfitters Is a Top-Ranked Value Stock
• Neutral Sentiment: Zacks Research maintained a “Strong-Buy” rating and raised its fiscal 2029 EPS forecast to $2.14 from $2.01, indicating some confidence in the company’s longer-term earnings potential.
• Negative Sentiment: Zacks lowered EPS estimates across several periods: Q3 2027 to $0.49 from $0.55, Q4 2027 to $0.82 from $0.86, Q1 2028 to $0.11 from $0.12, Q3 2028 to $0.55 from $0.58, Q4 2028 to $0.89 from $0.92, and fiscal 2028 to $1.88 from $1.90. It also cut Q1 2029 to $0.09 from $0.14. The breadth of these reductions points to softer expected near-term earnings momentum and may pressure the shares despite the bullish rating.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company's principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.

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