Zacks Research Issues Negative Forecast for AEO Earnings

American Eagle Outfitters, Inc. (NYSE:AEO) – Investment analysts at Zacks Research lowered their Q3 2027 EPS estimates for shares of American Eagle Outfitters in a research note issued on Wednesday, September 23rd. Zacks Research analyst Team now anticipates that the apparel retailer will post earnings per share of $0.49 for the quarter, down from their previous forecast of $0.55. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for American Eagle Outfitters’ current full-year earnings is $2.17 per share. Zacks Research also issued estimates for American Eagle Outfitters’ Q4 2027 earnings at $0.82 EPS, Q1 2028 earnings at $0.11 EPS, Q2 2028 earnings at $0.33 EPS, Q3 2028 earnings at $0.55 EPS, Q4 2028 earnings at $0.89 EPS, FY2028 earnings at $1.88 EPS, Q1 2029 earnings at $0.09 EPS and FY2029 earnings at $2.14 EPS.

American Eagle Outfitters (NYSE:AEO) last issued its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.57. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 23.63%. The company’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.45 EPS.

AEO has been the topic of several other research reports. Weiss Ratings restated a “hold (c)” rating on shares of American Eagle Outfitters in a research note on Thursday, August 27th. Morgan Stanley reduced their target price on American Eagle Outfitters from $18.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, September 10th. The Goldman Sachs Group set a $22.00 target price on American Eagle Outfitters in a research report on Monday, June 1st. BMO Capital Markets initiated coverage on American Eagle Outfitters in a report on Tuesday, September 8th. They issued a “market perform” rating and a $18.00 price target for the company. Finally, Telsey Advisory Group dropped their price target on American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating on the stock in a research report on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $19.36.

American Eagle Outfitters Stock Up 0.0%

NYSE:AEO opened at $15.93 on Thursday. The company has a market capitalization of $2.67 billion, a price-to-earnings ratio of 8.13, a price-to-earnings-growth ratio of 3.75 and a beta of 1.33. American Eagle Outfitters has a one year low of $14.06 and a one year high of $28.46. The stock has a 50-day simple moving average of $16.74 and a 200 day simple moving average of $17.06. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.62 and a current ratio of 1.59.

Institutional Investors Weigh In On American Eagle Outfitters

Several large investors have recently added to or reduced their stakes in AEO. BlackRock Inc. acquired a new position in shares of American Eagle Outfitters during the second quarter valued at $458,632,000. Dimensional Fund Advisors LP lifted its position in American Eagle Outfitters by 5.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,261,614 shares of the apparel retailer’s stock valued at $154,663,000 after purchasing an additional 509,326 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in American Eagle Outfitters by 162.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer’s stock valued at $105,818,000 after purchasing an additional 3,926,230 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in American Eagle Outfitters by 12.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer’s stock valued at $158,231,000 after purchasing an additional 680,332 shares during the period. Finally, Nykredit A S bought a new position in American Eagle Outfitters in the 2nd quarter worth about $46,023,000. 97.33% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,892 shares of American Eagle Outfitters stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total value of $48,498.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Noel Spiegel sold 2,892 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,563 shares of company stock valued at $196,599 over the last quarter. Insiders own 8.95% of the company’s stock.

American Eagle Outfitters Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be issued a $0.125 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $0.50 dividend on an annualized basis and a yield of 3.1%. American Eagle Outfitters’s dividend payout ratio (DPR) is currently 25.51%.

Key American Eagle Outfitters News

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Zacks Research raised its FY2029 earnings forecast to $2.14 per share from $2.01, suggesting improved longer-term profit expectations. However, this remains below the broader current-year consensus of $2.17. American Eagle Outfitters stock information
• Positive Sentiment: American Eagle’s denim momentum is improving as customers respond to new fits. Product and inventory initiatives could help revive women’s sales and broaden category growth. Can American Eagle’s New Denim Fits Help Revive Women’s Sales?
• Positive Sentiment: Zacks Research continues to rate AEO Strong-Buy, while the company’s relatively low valuation may attract value-oriented investors. American Eagle Outfitters Is a Top-Ranked Value Stock
• Neutral Sentiment: The company’s latest reported quarter showed strong execution, with earnings of $0.79 per share versus the $0.22 consensus and revenue of $1.38 billion, up 7.5% year over year. That performance provides a favorable foundation, but the new estimate revisions are more relevant to current trading.
• Negative Sentiment: Zacks Research reduced estimates for Q3 2027 EPS to $0.49 from $0.55 and Q4 2027 EPS to $0.82 from $0.86, signaling somewhat softer expected profitability.
• Negative Sentiment: Additional cuts lowered FY2028 EPS to $1.88 from $1.90, Q1 2028 EPS to $0.11 from $0.12, Q3 2028 EPS to $0.55 from $0.58, Q4 2028 EPS to $0.89 from $0.92, and Q1 2029 EPS to $0.09 from $0.14. These revisions can weigh on the stock by raising concerns about the pace of earnings growth.

About American Eagle Outfitters

American Eagle Outfitters, Inc (NYSE:AEO) is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company’s principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.