American Eagle Outfitters raked in stronger-than-expected second quarter earnings. However, the clothing & accessories retailer’s comparable sales growth came in lower than anticipated.
The company’s adjusted earnings for the three months ending on August 3 came in at 39 cents, up from the year-ago quarter’s 34 cents and higher than the Street estimate of 32 cents.
Group revenues increased +8% to $1.04 billion, slightly ahead of analysts’ expectation of $1 billion.
While American Eagle’s same-store sales climbed +2% from last year, the growth rate fell short of Wall Street forecasts of just over 3%. CEO Jay Schottenstein cited under-performance in certain seasonal categories and a delayed start to back-to-school shopping as challenges in the quarter. But he also emphasized on the company’s 18th consecutive quarter of positive consolidated comparable sales growth.
The company's forecast for its third quarter 2019 earnings per share is between 47 cents and 49 cents, which is a lower range compared to Refinitiv forecast of 52 cents per share.
AEO's Aroon Indicator triggered a bullish signal on March 18, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 230 similar instances where the Aroon Indicator showed a similar pattern. In of the 230 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on March 20, 2024. You may want to consider a long position or call options on AEO as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AEO just turned positive on March 20, 2024. Looking at past instances where AEO's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AEO advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for AEO moved out of overbought territory on March 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where AEO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AEO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AEO broke above its upper Bollinger Band on March 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.854) is normal, around the industry mean (3.869). P/E Ratio (29.233) is within average values for comparable stocks, (101.165). AEO's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.436). Dividend Yield (0.017) settles around the average of (0.030) among similar stocks. P/S Ratio (0.941) is also within normal values, averaging (2.060).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AEO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AEO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of specialty retail stores
Industry ApparelFootwearRetail