American Eagle (AEO) Q2 Earnings: What To Expect

Young adult apparel retailer American Eagle Outfitters (NYSE:AEO) will be announcing earnings results tomorrow morning. Here’s what investors should know.

American Eagle met analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 5.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ earnings estimates.

Is American Eagle a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting American Eagle’s revenue to grow 9% year on year to $1.31 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Eagle has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.

Looking at American Eagle’s peers in the apparel and footwear retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 1%, and Boot Barn reported revenues up 10.3%, topping estimates by 1.6%. Urban Outfitters traded down 9.5% following the results while Boot Barn was up 13.7%.

Read our full analysis of Urban Outfitters’s results here and Boot Barn’s results here.

Investors in the apparel and footwear retail segment have had steady hands going into earnings, with share prices flat over the last month. American Eagle is up 3.1% during the same time and is heading into earnings with an average analyst price target of $25.7 (compared to the current share price of $22.91).

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