We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why American Eagle (AEO) is Poised for Q3 Earnings Beat
Read MoreHide Full Article
American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top- and bottom-line growth when it reports third-quarter fiscal 2021 results on Nov 23. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.23 billion, which indicates growth of 19.1% from the year-ago reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is currently pegged at 61 cents per share, suggesting a 74.3% improvement from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved up by a penny in the past seven days.
In the last reported quarter, American Eagle delivered an earnings surprise of 9.1%. It has a trailing four-quarter earnings surprise of 7.5%, on average.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
American Eagle's third-quarter fiscal 2021 performance is expected to have benefited from brand strength, robust product portfolio and enhanced customer experience. AEO remains focused on inventory management, real-estate optimization efforts and investments to improve the supply chain. This is anticipated to have boosted fiscal third-quarter performance.
American Eagle is also expected to have witnessed improved in-store sales in the fiscal third quarter driven by robust store traffic. Strength in both factory outlets and mainline stores are expected to have contributed to store sales growth in the to-be-reported quarter. Momentum in digital business is expected to have been a key sales growth driver. Increased investments in digital and omni-channel e-commerce have been aiding results.
Continued momentum in Aerie along with AEO's Real Power, Real Growth value-creation plan bodes well.
Lower rent costs, reduced promotions and inventory-optimization efforts have been aiding margins. The impacts of higher revenues and robust merchandise margins across brands, stemming from strong demand, escalated full-priced sales, and reduced promotions as well as inventory-optimization efforts are anticipated to get reflected in the to-be-reported quarter's gross margin. Reduced rent, digital delivery expenses and compensation costs are expected to have aided operating margin.
However, higher SG&A expenses due to store reopenings, higher advertising costs, and performance-based incentive compensation are likely to have weighed on American Eagle's to-be-reported quarter's performance. AEO's top line is expected to have been somewhat impacted by the persistence of the pandemic-led disruptions in some regions.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Eagle has a Zacks Rank #3 and an Earnings ESP of +4.01%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +8.27% and a Zacks Rank of 3. The company is expected to have registered top-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for ANF's quarterly revenues is pegged at $894.4 million, which suggests a rise of 9.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Abercrombie's quarterly earnings moved up 4.7% in the last seven days to 67 cents per share, suggesting a 12% decline from the year-ago quarter's reported number. However, ANF has delivered an earnings beat of 510.9%, on average, in the trailing four quarters.
Nordstrom (JWN - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank #3. JWN is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings moved up 3.7% in the last seven days to 56 cents per share, suggesting 154.6% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Nordstrom's quarterly revenues is pegged at $3.54 billion, suggesting growth of 14.5% from the figure reported in the prior-year quarter. JWN has delivered an earnings beat of 557.3%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +27.97% and a Zacks Rank #3. DKS is likely to register top-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly earnings moved up 3.3% in the last 30 days to $1.88 per share, suggesting a decline of 6.5% from the year-ago quarter.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.42 billion, which suggests growth of 0.4% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 117.4%, on average, in the trailing four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why American Eagle (AEO) is Poised for Q3 Earnings Beat
American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top- and bottom-line growth when it reports third-quarter fiscal 2021 results on Nov 23. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.23 billion, which indicates growth of 19.1% from the year-ago reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is currently pegged at 61 cents per share, suggesting a 74.3% improvement from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved up by a penny in the past seven days.
In the last reported quarter, American Eagle delivered an earnings surprise of 9.1%. It has a trailing four-quarter earnings surprise of 7.5%, on average.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
American Eagle Outfitters, Inc. price-consensus-eps-surprise-chart | American Eagle Outfitters, Inc. Quote
Key Factors to Note
American Eagle's third-quarter fiscal 2021 performance is expected to have benefited from brand strength, robust product portfolio and enhanced customer experience. AEO remains focused on inventory management, real-estate optimization efforts and investments to improve the supply chain. This is anticipated to have boosted fiscal third-quarter performance.
American Eagle is also expected to have witnessed improved in-store sales in the fiscal third quarter driven by robust store traffic. Strength in both factory outlets and mainline stores are expected to have contributed to store sales growth in the to-be-reported quarter. Momentum in digital business is expected to have been a key sales growth driver. Increased investments in digital and omni-channel e-commerce have been aiding results.
Continued momentum in Aerie along with AEO's Real Power, Real Growth value-creation plan bodes well.
Lower rent costs, reduced promotions and inventory-optimization efforts have been aiding margins.
The impacts of higher revenues and robust merchandise margins across brands, stemming from strong demand, escalated full-priced sales, and reduced promotions as well as inventory-optimization efforts are anticipated to get reflected in the to-be-reported quarter's gross margin. Reduced rent, digital delivery expenses and compensation costs are expected to have aided operating margin.
However, higher SG&A expenses due to store reopenings, higher advertising costs, and performance-based incentive compensation are likely to have weighed on American Eagle's to-be-reported quarter's performance. AEO's top line is expected to have been somewhat impacted by the persistence of the pandemic-led disruptions in some regions.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Eagle has a Zacks Rank #3 and an Earnings ESP of +4.01%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +8.27% and a Zacks Rank of 3. The company is expected to have registered top-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for ANF's quarterly revenues is pegged at $894.4 million, which suggests a rise of 9.1% from the figure reported in the prior-year quarter.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie's quarterly earnings moved up 4.7% in the last seven days to 67 cents per share, suggesting a 12% decline from the year-ago quarter's reported number. However, ANF has delivered an earnings beat of 510.9%, on average, in the trailing four quarters.
Nordstrom (JWN - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank #3. JWN is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings moved up 3.7% in the last seven days to 56 cents per share, suggesting 154.6% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Nordstrom's quarterly revenues is pegged at $3.54 billion, suggesting growth of 14.5% from the figure reported in the prior-year quarter. JWN has delivered an earnings beat of 557.3%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +27.97% and a Zacks Rank #3. DKS is likely to register top-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly earnings moved up 3.3% in the last 30 days to $1.88 per share, suggesting a decline of 6.5% from the year-ago quarter.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.42 billion, which suggests growth of 0.4% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 117.4%, on average, in the trailing four quarters.