American Eagle Outfitters (AEO) 4Q17 Results: Company Beats Expectations, Issues Solid Outlook

Executive Summary

• American Eagle Outfitters reported 4Q17 revenues of $1.23 billion, up 11.8% year over year and beating the $1.21 billion consensus estimate. Adjusted EPS was $0.44, in line with the consensus estimate and up from $0.39 in the year-ago quarter.
• Comparable sales were up 8.0% year over year, beating the consensus estimate of 7.2%.
• The company’s EPS guidance for 1Q18 is $0.20–$0.22, versus the $0.19 consensus estimate. The company expects 1Q18 comps to increase by mid-single digits, compared with the consensus estimate of 3.2%.