Earnings Preview: American Eagle sees Q3 EPS 37c-38c, FY EPS $1.33-$1.36

theflyonthewall.com

American Eagle Outfitters (AEO) is expected to report Q3 earnings before the market open on Wednesday, November 28 with a conference call scheduled for 9:00 am ET. Analysts are looking for EPS of 39c on revenue of $873.26M. The consensus range is 37c-42c for EPS and $842.21M-$900M for revenue, according to First Call. On August 2, American Eagle forecast Q3 EPS 37c-38c and said it would incur an after-tax loss of approximately $35M from the exit of 77kids; the company reported an after-tax loss in Q2 of $24M, and the remainder of the costs were incurred in Q3. The retailer also forecast Q3 same-store sales growth of mid single digits and Q4 SSS growth of low single digits. In addition, American Eagle raised its FY EPS view to $1.33-$1.36, consensus $1.37. At its investor day in October, American Eagle forecast FY12 sales $3.44B, consensus $3.42B, and said it was targeting sales CAGR 7%-9% and EBIT CAGR 12%-15%. The company also said it was targeting long-term gross margin of 42%-44%. Looking ahead, American Eagle is expected to offer comments on the upcoming holiday season, and may offer comments on whether it believes Hurricane Sandy will impact Q4 sales; Citigroup analyst Oliver Chen recently noted that American Eagle is among the companies with the highest percentage of stores in the area directly affected by Sandy.

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