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Here's Why American Eagle (AEO) is Poised for Q1 Earnings Beat
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American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top-line growth when it reports first-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.14 billion, which indicates growth of 9.9% from the year-ago reported figure.
However, the Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 24 cents per share, suggesting a 50% decline from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved down by a penny in the past seven days.
Also, it has a trailing four-quarter earnings surprise of 10.6%, on average.
Key Factors to Note
American Eagle has been gaining from robust demand, higher full-priced sales and reduced promotions. With customers returning to stores, mainline and factory outlets have been witnessing improvements, driven by a demand recovery. This is likely to have boosted the store performance in the fiscal first quarter.
Continued strength in the Aerie brand, along with a solid online show, bodes well. It has been on track to expand its omnichannel capabilities, including a new mobile point-of-sale solution, along with an instant credit feature for returns and the expansion of its Afterpay capabilities in its mobile app. AEO also relaunched its loyalty program.
Earlier, it expanded same-day delivery services and customer self-checkout to more regions. Gains from the acquisition of Quiet Logistics have been aiding delivery. Such well-chalked efforts are likely to have contributed to the company’s top line in the quarter under review.
Also, it is on track with the Real Power, Real Growth value-creation plan. The company’s first-quarter fiscal 2022 performance is expected to have benefited from the significant progress on its Real Power Real Growth value creation plan. The plan has been driving profitability through real estate and inventory-optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. The company’s efforts under the plan have been aiding the recovery of the American Eagle brand.
However, AEO has been reeling under higher freight costs and industry-wide supply-chain disruptions. This has been hurting margins and the bottom line.
On its last reported quarter’s earnings call, management expected earnings to decline in the first half of fiscal 2022 due to continued freight pressures. Also, a rise in store wages and variable selling expenses remain concerning.
American Eagle Outfitters, Inc. Price and EPS Surprise
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 +3.55%.
Other Stocks With Favorable Combination
Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly earnings moved up 0.7% in the last 30 days to $3.04 per share, indicating a 10.6% increase from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, Costco’s top line is expected to have risen year over year. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.76 billion, suggesting growth of 14.3% from the figure reported in the prior-year quarter. COST has delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Fastenal (FAST - Free Report) currently has an Earnings ESP of +2.82% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly earnings has been unchanged at 50 cents per share in the past 30 days, implying 19.1% growth from the year-ago quarter’s reported number.
However, Fastenal’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, which suggests a rise of 18.3% from the figure reported in the prior-year quarter. FAST has delivered an earnings beat of 5%, on average, in the trailing four quarters.
Casey’s General Stores (CASY - Free Report) currently has an Earnings ESP of +3.73% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly earnings has moved north by 2.8% to $1.48 per share in the past 30 days, indicating a 32.1% rise from the year-ago quarter’s reported number.
Casey’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.34 billion, which suggests a rise of 40.4% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 21.6%, on average, in the trailing four quarters.
Image: Bigstock
Here's Why American Eagle (AEO) is Poised for Q1 Earnings Beat
American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top-line growth when it reports first-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.14 billion, which indicates growth of 9.9% from the year-ago reported figure.
However, the Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 24 cents per share, suggesting a 50% decline from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved down by a penny in the past seven days.
Also, it has a trailing four-quarter earnings surprise of 10.6%, on average.
Key Factors to Note
American Eagle has been gaining from robust demand, higher full-priced sales and reduced promotions. With customers returning to stores, mainline and factory outlets have been witnessing improvements, driven by a demand recovery. This is likely to have boosted the store performance in the fiscal first quarter.
Continued strength in the Aerie brand, along with a solid online show, bodes well. It has been on track to expand its omnichannel capabilities, including a new mobile point-of-sale solution, along with an instant credit feature for returns and the expansion of its Afterpay capabilities in its mobile app. AEO also relaunched its loyalty program.
Earlier, it expanded same-day delivery services and customer self-checkout to more regions. Gains from the acquisition of Quiet Logistics have been aiding delivery. Such well-chalked efforts are likely to have contributed to the company’s top line in the quarter under review.
Also, it is on track with the Real Power, Real Growth value-creation plan. The company’s first-quarter fiscal 2022 performance is expected to have benefited from the significant progress on its Real Power Real Growth value creation plan. The plan has been driving profitability through real estate and inventory-optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. The company’s efforts under the plan have been aiding the recovery of the American Eagle brand.
However, AEO has been reeling under higher freight costs and industry-wide supply-chain disruptions. This has been hurting margins and the bottom line.
On its last reported quarter’s earnings call, management expected earnings to decline in the first half of fiscal 2022 due to continued freight pressures. Also, a rise in store wages and variable selling expenses remain concerning.
American Eagle Outfitters, Inc. Price and EPS Surprise
American Eagle Outfitters, Inc. price-eps-surprise | American Eagle Outfitters, Inc. Quote
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 +3.55%.
Other Stocks With Favorable Combination
Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly earnings moved up 0.7% in the last 30 days to $3.04 per share, indicating a 10.6% increase from the year-ago quarter's reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, Costco’s top line is expected to have risen year over year. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.76 billion, suggesting growth of 14.3% from the figure reported in the prior-year quarter. COST has delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Fastenal (FAST - Free Report) currently has an Earnings ESP of +2.82% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly earnings has been unchanged at 50 cents per share in the past 30 days, implying 19.1% growth from the year-ago quarter’s reported number.
However, Fastenal’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, which suggests a rise of 18.3% from the figure reported in the prior-year quarter. FAST has delivered an earnings beat of 5%, on average, in the trailing four quarters.
Casey’s General Stores (CASY - Free Report) currently has an Earnings ESP of +3.73% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly earnings has moved north by 2.8% to $1.48 per share in the past 30 days, indicating a 32.1% rise from the year-ago quarter’s reported number.
Casey’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.34 billion, which suggests a rise of 40.4% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 21.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.