American Eagle Outfitters Inc. (AEO - Free Report) is scheduled to report third-quarter fiscal 2016 results on Nov 30. Last quarter, this specialty retailer of casual apparel, accessories and footwear posted a positive earnings surprise of 9.5%.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 9.3%. Let's see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that American Eagle Outfitters is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. American Eagle Outfitters has an Earnings ESP of -2.44%, as the Most Accurate estimate stands at 40 cents, while the Zacks Consensus Estimate is pegged higher at 41 cents. The company carries a Zacks Rank #3, which when combined with an ESP of -2.44%, makes an earnings surprise difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing the Upcoming Results
American Eagle has been gaining from its constant efforts to enhance brands via innovations, through technological advancements as well as its commitment toward enriching consumer experience. We believe that the company’s focus on enhancing consumer experience by providing top-quality products is likely to position its brands well in the evolving retail space.
However, high dependence on external suppliers and macroeconomic headwinds is likely to dampen results. Further, the company’s attempt to grow globally exposes it to currency woes and other global risks.
Earlier, the company had offered its view for third-quarter fiscal 2016, wherein it anticipates comps growth at a low single-digit rate. Further, the company projects earnings per share in the band of 40–41 cents compared with 35 cents earned in the prior-year quarter.
Other Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sanderson Farms, Inc. has an Earnings ESP of +4.48% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ascena Retail Group Inc. carries a Zacks Rank #3 and has an Earnings ESP of +14.29%.
Express Inc. has an Earnings ESP of + 16.67% and also carries a Zacks Rank #3.
Confidential from Zacks
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
American Eagle Outfitters Inc. (AEO - Free Report) is scheduled to report third-quarter fiscal 2016 results on Nov 30. Last quarter, this specialty retailer of casual apparel, accessories and footwear posted a positive earnings surprise of 9.5%.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 9.3%. Let's see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that American Eagle Outfitters is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. American Eagle Outfitters has an Earnings ESP of -2.44%, as the Most Accurate estimate stands at 40 cents, while the Zacks Consensus Estimate is pegged higher at 41 cents. The company carries a Zacks Rank #3, which when combined with an ESP of -2.44%, makes an earnings surprise difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing the Upcoming Results
American Eagle has been gaining from its constant efforts to enhance brands via innovations, through technological advancements as well as its commitment toward enriching consumer experience. We believe that the company’s focus on enhancing consumer experience by providing top-quality products is likely to position its brands well in the evolving retail space.
However, high dependence on external suppliers and macroeconomic headwinds is likely to dampen results. Further, the company’s attempt to grow globally exposes it to currency woes and other global risks.
Earlier, the company had offered its view for third-quarter fiscal 2016, wherein it anticipates comps growth at a low single-digit rate. Further, the company projects earnings per share in the band of 40–41 cents compared with 35 cents earned in the prior-year quarter.
Other Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Sanderson Farms, Inc. has an Earnings ESP of +4.48% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ascena Retail Group Inc. carries a Zacks Rank #3 and has an Earnings ESP of +14.29%.
Express Inc. has an Earnings ESP of + 16.67% and also carries a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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