Clothing retailer American Eagle Outfitters ( AEO ) on Wednesday posted a sharp uptick in third quarter earnings and announced earnings guidance exceeding expectations, sending its shares higher in premarket trading.
The Pittsburgh-based company reported third quarter net income of $52.43 million, or 27 cents per share, compared with $33.02 million, or 17 cents per share, in the year-ago period.
Revenue rose 10.7% from last year to $831.83 million.
On average, Wall Street analysts expected a matching profit of 27 cents per share, on much lower revenue of $791.43 million.
CEO Jim O'Donnell commented, "I am encouraged by our progress in the third quarter and the continued momentum into the holiday season. Strong top line growth is evidence of the success of our key item strategy and merchandise improvements. Looking ahead to 2012, we have tremendous opportunity to capitalize on the strength of our brands and drive future profitable growth."
For the current fourth quarter, AEO forecast earnings of 40 to 44 cents per share, which would beat analyst expectations of 39 cents.
American Eagle Outfitters shares rose 60 cents, or +4.5%, in premarket trading Wednesday.
The Bottom Line
Shares of American Eagle Outfitters ( AEO ) have a 3.28% dividend yield, based on last night's closing stock price of $13.43. The stock has technical support in the $11 price area. If the shares can firm up, we see overhead resistance around the $14-$15 price levels.
American Eagle Outfitters ( AEO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com