American Eagle Outfitters – Tremendous opportunity to capitalize on the strength of our brands




American Eagle Outfitters (NYSE:AEO). Last Market Price: 13.94, Change: +0.51, % Change: (3.80%). Shares trade in the range of 13.83 – 14.97 dollars. It has a market capitalization of 2.72B dollars, making it a Mid Cap Stock and has 194.90M outstanding shares. The company has a beta of 1.06, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 0.85; P/E of 16.31 indicating, that the stock price to be fair valued. It operates in Services sector and belongs to Retail (Apparel) industry. Percentage shares held by institutional investors is 81%. The company has a 52 week Price range (low – high) of $ 10.00 – 16.90. Average volumes of shares traded daily are 3,640,000. Volume traded in the last session was at 2,250,000, 0.62 times the average volume.

  • Reports Q3 (Oct)
    • EPS of $0.27, in-line with the market estimates
    • Revenues rose 10.7% year on year to $831.8 million
  • Company issues upside guidance for Q4, sees EPS of $0.40-0.44
  • Jim O’Donnell, chief executive officer states: I am encouraged by our progress in the third quarter and the continued momentum into the holiday season. Strong top line growth is evidence of the success of our key item strategy and merchandise improvements. Looking ahead to 2012, we have tremendous opportunity to capitalize on the strength of our brands and drive future profitable growth.

For Q3 (Jul ’11), It had a Net profit margin of 2.91%, an Operating margin of 4.33%. Other Key stats and ratios are : Return on average assets of 4.27%, Return on average equity of 5.77%. The organization has an employee strength of 6,900

Consensus Recommendation is a Hold.


Estimate for sales for the Year Ending Jan-12 show a mean of 3,095.91 million dollars, an estimate high of 3,148.03 million dollars and an estimate low of 2,983.00 million dollars. A year ago the figures stood at 3,129.96 million dollars.

Estimate for sales for the Year Ending Jan-13 show a mean of 3,221.92 million dollars, an estimate high of 3,385.20 million dollars and an estimate low of 3,069.00 million dollars. A year ago the figures stood at 3,187.57 million dollars.

Estimate for EPS for the Year Ending Jan-12 show a mean of 0.90 dollars, an estimate high of 0.95 dollars and an estimate low of 0.84 dollars. A year ago the figures stood at 1.17 dollars.

Estimate for EPS for the Year Ending Jan-13 show a mean of 1.04 dollars, an estimate high of 1.42 dollars and an estimate low of 0.85 dollars. A year ago the figures stood at 1.25 dollars.

Sales for Quarter Ending Jul-11 was estimated at 648.53 million dollars, however the actual sales figure stood at 675.70 million dollars, 27.18 million dollars more than estimates.

Sales for Quarter Ending Apr-11 was estimated at 637.16 million dollars, however the actual sales figure stood at 609.56 million dollars, 27.59 million dollars less than estimates.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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