American Eagle Outfitters Earnings: Keeping the Profitability Streak Alive

American Eagle Outfitters Inc. (NYSE:AEO) reported net income above Wall Street’s expectations for the third quarter. American Eagle Outfitters is a retailer that designs, markets, and sells its own brand of clothing, accessories, and personal care products.

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American Eagle Outfitters Inc. Earnings Cheat Sheet

Results: Net income for American Eagle Outfitters Inc. rose to $78.6 million (40 cents per share) vs. $52.4 million (27 cents per share) in the same quarter a year earlier. This marks a rise of 49.9% from the year-earlier quarter.

Revenue: Rose 11.1% to $910.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Eagle Outfitters Inc. reported adjusted net income of 41 cents per share. By that measure, the company beat the mean estimate of 39 cents per share. It beat the average revenue estimate of $720 million.

Quoting Management: Robert Hanson, chief executive officer stated, “Our third quarter reflected on-going business momentum, profitable sales growth, and a leading brand and product driven customer experience. We’re also pleased to see business strength carry into the fourth quarter and record results over Thanksgiving weekend. As we look forward, we are sharply focused on executing our strategy plan to drive future profitable growth and top tier shareholder returns.”

Key Stats:

The company beat estimates last quarter after meeting expectations in the second quarter with net income of 21 cents per share.

The increase in profit last quarter comes after net income fell in the previous quarter. In the second quarter, net income declined 3.3% to $19 million.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 55 cents a share. The average estimate for the fiscal year has seen a bump from $1.36 per share sixty days ago to $1.37.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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