Earnings Preview: American Eagle Outfitters

Nov.29.11 | About: American Eagle (AEO)

American Eagle Outfitters (NYSE:AEO) is expected to report Q3 earnings before the market open on Wednesday, November 30 with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for EPS of 27c on revenue of $787.33M. The consensus range is 23-28c for EPS and $754.99M-$832M for revenue, according to First Call. In November, American Eagle reported Q3 revenue $832M and said same-store sales increased 5% for the quarter. The retailer also forecast Q3 EPS 26c-27c, narrowed from its previous view of 22c-27c. On November 15, the company named Robert Hanson as the company's next CEO, effective January 30, succeeding retiring CEO Jim O'Donnell.

Analyst Views

Oppenheimer believes that the new CEO, who most recently worked at Levi's, will reinforce American Eagle's positioning as a top provider of denim apparel. The firm thinks that Hanson will also be able to help American Eagle perform well in international markets. Analysts and investors will listen for comments from the company on commodity costs and price increases, as well as any potential share repurchases and dividends.