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Things to Note Ahead of American Eagle's (AEO) Q4 Earnings
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American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top-line growth when it reports fourth-quarter fiscal 2021 results on Feb 2. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.52 billion, which indicates growth of 17.6% from the year-ago reported figure. The consensus mark for fiscal 2021 revenues is pinned at $5.02 billion, indicating growth of 33.5% from the prior-year reported figure.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is currently pegged at 36 cents per share, suggesting a 7.7% decline from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved down by 5.3% in the past 30 days. The consensus estimate for fiscal 2021 earnings is pegged at $2.16 per share, indicating growth of 980% from the prior year’s reported figure.
In the last reported quarter, American Eagle delivered an earnings surprise of 26.7%. It has a trailing four-quarter earnings surprise of 12.7%, on average.
American Eagle Outfitters, Inc. Price and EPS Surprise
American Eagle's fourth-quarter fiscal 2021 performance is expected to have benefited from the significant progress on its Real Power Real Growth value creation plan. The plan is driving profitability through real estate and inventory optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. Robust consumer demand for its merchandise and brands has been aiding its performance.
Strength in the digital business has likely been another driver. The company’s efforts to expand its omnichannel capabilities have been aiding digital sales.
Driven by the trends and progress on its growth plan, American Eagle recently updated its fourth-quarter and fiscal 2021 view. The company expects to achieve an operating income of $600 million in fiscal 2021. This will help it surpass its fiscal 2023 operating income and margin goals two years ahead of schedule.
Additionally, American Eagle’s updated fourth-quarter fiscal 2021 view suggests gains from solid demand and pricing actions. It anticipates fiscal fourth-quarter revenue growth in a mid-to-high teens range on a year-over-year basis and mid-teens growth on a two-year basis. The operating income is likely to be $90-$100 million, inclusive of freight expenses of $80 million stemming from supply-chain disruptions.
The company is also focused on enhancing the supply chain under the Real Power Real Growth plan. Its recent acquisitions of Quiet Logistics and AirTerra to offer affordable same-day and next-day delivery services bode well. The buyouts are expected to have transformed the supply chain and helped expand AEO’s customer base, as well as drive growth, particularly in its online channel. This is expected to have boosted the fiscal fourth-quarter performance.
However, continued SG&A expenses due to higher store payroll, store openings and rising advertising costs are likely to have been worrisome. Elevated freight costs are expected to have been concerning.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Eagle has a Zacks Rank #3 and an Earnings ESP of +0.69%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +3.05% and a Zacks Rank of 2. The company is expected to have registered top-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.13 billion, which suggests a rise of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s quarterly earnings moved up by a penny in the last seven days to $1.79 per share, suggesting a 16% decline from the year-ago quarter's reported number. DLTR has delivered an earnings beat of 8.8%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #2. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DKS’ quarterly earnings moved up by a penny in the last 30 days to $3.39 per share, suggesting 39.5% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for DICK'S Sporting's quarterly revenues is pegged at $3.31 billion, suggesting growth of 6% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 104.2%, on average, in the trailing four quarters.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is expected to register top-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for COST’s quarterly earnings moved up 1.1% in the last 30 days to $2.67 per share, suggesting growth of 24.8% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Costco Wholesale's quarterly revenues is pegged at $51.1 billion, which suggests growth of 14% from the figure reported in the prior-year quarter. COST has delivered an earnings beat of 8.3%, on average, in the trailing four quarters.
Image: Bigstock
Things to Note Ahead of American Eagle's (AEO) Q4 Earnings
American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register robust top-line growth when it reports fourth-quarter fiscal 2021 results on Feb 2. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.52 billion, which indicates growth of 17.6% from the year-ago reported figure. The consensus mark for fiscal 2021 revenues is pinned at $5.02 billion, indicating growth of 33.5% from the prior-year reported figure.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is currently pegged at 36 cents per share, suggesting a 7.7% decline from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved down by 5.3% in the past 30 days. The consensus estimate for fiscal 2021 earnings is pegged at $2.16 per share, indicating growth of 980% from the prior year’s reported figure.
In the last reported quarter, American Eagle delivered an earnings surprise of 26.7%. It has a trailing four-quarter earnings surprise of 12.7%, on average.
American Eagle Outfitters, Inc. Price and EPS Surprise
American Eagle Outfitters, Inc. price-eps-surprise | American Eagle Outfitters, Inc. Quote
Key Factors to Note
American Eagle's fourth-quarter fiscal 2021 performance is expected to have benefited from the significant progress on its Real Power Real Growth value creation plan. The plan is driving profitability through real estate and inventory optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. Robust consumer demand for its merchandise and brands has been aiding its performance.
Strength in the digital business has likely been another driver. The company’s efforts to expand its omnichannel capabilities have been aiding digital sales.
Driven by the trends and progress on its growth plan, American Eagle recently updated its fourth-quarter and fiscal 2021 view. The company expects to achieve an operating income of $600 million in fiscal 2021. This will help it surpass its fiscal 2023 operating income and margin goals two years ahead of schedule.
Additionally, American Eagle’s updated fourth-quarter fiscal 2021 view suggests gains from solid demand and pricing actions. It anticipates fiscal fourth-quarter revenue growth in a mid-to-high teens range on a year-over-year basis and mid-teens growth on a two-year basis. The operating income is likely to be $90-$100 million, inclusive of freight expenses of $80 million stemming from supply-chain disruptions.
The company is also focused on enhancing the supply chain under the Real Power Real Growth plan. Its recent acquisitions of Quiet Logistics and AirTerra to offer affordable same-day and next-day delivery services bode well. The buyouts are expected to have transformed the supply chain and helped expand AEO’s customer base, as well as drive growth, particularly in its online channel. This is expected to have boosted the fiscal fourth-quarter performance.
However, continued SG&A expenses due to higher store payroll, store openings and rising advertising costs are likely to have been worrisome. Elevated freight costs are expected to have been concerning.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Eagle has a Zacks Rank #3 and an Earnings ESP of +0.69%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +3.05% and a Zacks Rank of 2. The company is expected to have registered top-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.13 billion, which suggests a rise of 5.3% from the figure reported in the prior-year quarter.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dollar Tree’s quarterly earnings moved up by a penny in the last seven days to $1.79 per share, suggesting a 16% decline from the year-ago quarter's reported number. DLTR has delivered an earnings beat of 8.8%, on average, in the trailing four quarters.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #2. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DKS’ quarterly earnings moved up by a penny in the last 30 days to $3.39 per share, suggesting 39.5% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for DICK'S Sporting's quarterly revenues is pegged at $3.31 billion, suggesting growth of 6% from the figure reported in the prior-year quarter. DKS has delivered an earnings beat of 104.2%, on average, in the trailing four quarters.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is expected to register top-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for COST’s quarterly earnings moved up 1.1% in the last 30 days to $2.67 per share, suggesting growth of 24.8% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Costco Wholesale's quarterly revenues is pegged at $51.1 billion, which suggests growth of 14% from the figure reported in the prior-year quarter. COST has delivered an earnings beat of 8.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.