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American Eagle’s Q2 Profit Doubles, but Misses View (AEO)

Teen clothing retailer American Eagle Outfitters ( AEO ) on Wednesday posted second quarter earnings that rose sharply from last year, but still fell short of analyst expectations.

The Pittsburgh-based company reported second quarter net income of $19.67 million, or 10 cents per share, compared with $9.66 million, or 5 cents per share, in the year-ago period.

Revenue rose 4% from last year to $675.7 million.

On average, Wall Street analysts expected a slightly higher profit of 11 cents per share, albeit on lower revenue of $650.78 million.

Looking ahead, the company said it expects third quarter earnings to range from 22 to 27 cents per share, while analysts are looking for 27 cents. For the full year, the company projects earnings of 85 to 95 cents per share, while analysts expect 94 cents for the year.

American Eagle shares fell 27 cents, or -2.3%, in premarket trading Wednesday.

The Bottom Line

Shares of American Eagle Outfitters ( AEO ) have a 3.79% dividend yield, based on last night's closing stock price of $11.62. The stock has technical support in the $9-$10 price area. If the shares can firm up, we see overhead resistance around the $13-$14 price levels.

American Eagle Outfitters ( AEO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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