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Aeropostale Inc (NYSE:ARO) is scheduled to report its Q2 2012 results on August 16, 2012, after the bell. The Street expects EPS and revenue of $0.00 and $495.49M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ARO and the news from its closest competitors.

Aeropostale Inc Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.13 EPS, in-line with analyst estimates.

Aeropostale Inc EPS Historical Results vs Estimates

The consensus EPS estimate is $0.00 based on 24 analysts' estimates, up from ($0.02) loss a year ago. Revenue estimates are $495.49M, up from $468.19M a year ago. The median target price by analysts for the stock is $18.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On August 2, 2012, Suntrust Robinson Humphrey downgraded the company from Strong Buy to Hold.
  • On July 30, 2012, RBC Capital Mkts upgraded the company from Sector Perform to Outperform.
  • On July 30, 2012, Caris & Company upgraded the company from Above Average to Buy.
  • On May 22, 2012, Imperial Capital upgraded the company from In-line to Outperform.
  • On May 4, 2012, FBR Capital reiterated its Mkt Perform rating for the company.
  • On April 24, 2012, Janney Mntgmy Scott upgraded the company from Neutral to Buy.
  • On April 2, 2012, Barclays reiterated its Overweight rating for the company.
  • On March 9, 2012, Barclays Capital reiterated its Overweight rating for the company.
  • On March 8, 2012, Caris & Company upgraded the company from Average to Above Average.
  • On March 6, 2012, Brean Murray reiterated its Buy rating for the company.
  • On February 16, 2012, Standpoint Research downgraded the company from Buy to Hold.

Latest News

  • On August 2, 2012, Aeropostale, Inc. announced updated expectations for the second quarter. For the second quarter of fiscal 2012, net sales increased 4% to $485.3 million, from $468.2 million in the year ago period. Comparable sales, including the e-commerce channel, for the second quarter were essentially flat, compared to a 12% decrease last year. Same store sales, excluding the e-commerce channel, for the second quarter decreased 1%, compared to a 14% decrease last year.
  • On July 9, 2012, Aeropostale, Inc. announced a partnership with film actress Chloe Grace Moretz, who will serve as Aeropostale's celebrity brand ambassador. The campaign will begin with the 2012 back-to-school season and continue through the spring of 2013. In this new role, the Dark Shadows star and young fashionista will work with Aeropostale to highlight the brand's exciting new looks, in addition to promoting the company's philanthropic endeavors.
  • On May 17, 2012, Aeropostale Inc announced that for second quarter of 2012, it expects earnings in the range of $0.03 to $0.05 per diluted share (NYSEARCA:EPS). This compares to earnings of $0.04 per diluted share for the second quarter of 2011, which included a non-recurring pre-tax benefit to the Company's gross profit of $8.7 million, or $0.06 per diluted share, resulting from the resolution of a dispute with one of the Company's merchandise vendors surrounding prior period allowances.
  • On May 3, 2012, Aeropostale Inc announced that based on the better than expected performance for the quarter, the Company now expects first quarter 2012 earnings in the range of $0.12-$0.13 per diluted share, versus its previously issued guidance range of $0.08-$0.10 per diluted share.
  • On March 8, 2012, Aeropostale Inc announced that for the first quarter of 2012, the Company expects earnings in the range of $0.08 to $0.10 per diluted share. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.12 for the first quarter of 2012.

Competitors

American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), Gap (NYSE:GPS), and Urban Outfitters (NASDAQ:URBN) are considered major competitors for Aeropostale Inc and the table below provides the key metrics for these companies and the industry.

Aeropostale Inc key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

ARO Chart

ARO data by YCharts

Competitors' Latest Developments

  • On August 2, 2012, The Gap, Inc. announced that for second quarter of 2012, it expects diluted earnings per share to be in the range of $0.47 to $0.48, compared with $0.35 for the second quarter last year.
  • On August 1, 2012, Abercrombie & Fitch announced that for the second quarter of 2012, it expects diluted earnings per share of approximately $0.15-$0.18. Based on a lower sales trend than previously projected, the Company now expects fiscal 2012, diluted earnings per share of approximately $2.50 to $2.75. This projection assumes same store sales to be down 10% for the second half of the year, consistent with the second quarter trend.
  • On August 1, 2012, American Eagle Outfitters, Inc. announced that for second quarter of 2012, it is raising its adjusted EPS outlook to $0.19 to $0.21.
  • On May 17, 2012, The Gap, Inc. announced that its Board of Directors authorized a quarterly dividend of $0.125 per share payable on or after July 24, 2012 to shareholders of record at the close of business on July 3, 2012.
  • On May 17, 2012, The Gap, Inc. announced that the Company raised its guidance for fiscal 2012 diluted earnings per share to be in the range of $1.78 to $1.83.
  • On May 3, 2012, The Gap, Inc. announced that for first quarter of 2012, it expects earnings per share in the range of $0.44 to $0.46. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.40 for first quarter of 2012.
  • On May 2, 2012, American Eagle Outfitters, Inc. announced that for the first quarter of 2012, it expects earnings to be in the range of $0.18-$0.20 per diluted share.
  • On March 21, 2012, Urban Outfitters, Inc. announced that Eric Artz is stepping down as Chief Financial Officer (NASDAQ:CFO) effective April 3, 2012, and is being replaced by Frank Conforti, the Company's Chief Accounting Officer.
  • On March 19, 2012, Dow Jones reported that The Gap, Inc. (Gap) has opened its first store in South Africa. The expansion in the region comes as the Company is closing stores in North America and opening outlets in other emerging markets.
  • On March 7, 2012, American Eagle Outfitters, Inc. announced that for fiscal 2012, the Company is planning a modest sales increase. According to I/B/E/S Estimates, analysts are expecting the Company to report revenues of $3.33 billion for fiscal 2012.
  • On February 23, 2012, The Gap, Inc. announced that it has approved a new $1 billion share repurchase authorization and approved a plan to increase the annual dividend per share by 11%, from $0.45 in fiscal year 2011 to $0.50 for fiscal year 2012.
  • On February 23, 2012, The Gap, Inc. announced that for fiscal 2012, it expects diluted earnings per share to be in the range of $1.75 - $1.80. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.79 for fiscal 2012.
  • On February 16, 2012, Abercrombie & Fitch announced that for fiscal 2012, it expects earnings per share in the range of $3.50-$3.75. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $3.48 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $1.07B and is currently trading at $13.22 with a 52 week range of $9.16 - $23.05. The stock's year-to-date performance has been -13.31%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Aeropostale Reports Q2 Results On August 16