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American Eagle (AEO) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

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American Eagle Outfitters (AEO - Free Report) reported $1.2 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 0.2%. EPS of $0.25 for the same period compares to $0.04 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.19 billion, representing a surprise of +1.09%. The company delivered an EPS surprise of +66.67%, with the consensus EPS estimate being $0.15.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how American Eagle performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Number of stores - Total (EOP): 1184 versus the four-analyst average estimate of 1163.5.
  • Gross square footage - Total: 7.29 Msq ft versus the three-analyst average estimate of 7.14 Msq ft.
  • Number of stores - AE Brand: 866 compared to the 835.33 average estimate based on three analysts.
  • Comparable store sales- American Eagle Outfitters: -2% versus the three-analyst average estimate of -2.63%.
  • Number of stores - Aerie stand-alone: 300 compared to the 303 average estimate based on three analysts.
  • Total net revenue- American Eagle: $767.02 million versus $757.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.4% change.
  • Total net revenue- Aerie: $380.41 million versus the three-analyst average estimate of $360.62 million. The reported number represents a year-over-year change of +2.4%.
  • Operating income (loss)- Aerie: $57.25 million versus $33.02 million estimated by two analysts on average.
  • Operating income (loss)- American Eagle: $128.66 million versus the two-analyst average estimate of $144.85 million.
View all Key Company Metrics for American Eagle here>>>

Shares of American Eagle have returned +11.6% over the past month versus the Zacks S&P 500 composite's -0.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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