American Eagle Outfitters (NYSE:AEO) Quarterly Earnings Preview

• Analysts predict an EPS of $0.20 and revenue of approximately $1.23 billion for the upcoming quarter.
• AEO faces challenges with a projected 4.5% decrease in revenue and a 48.7% drop in EPS from the previous year.
• Despite these challenges, a 1.5% upward revision in the consensus EPS estimate suggests potential for short-term stock price movements.

American Eagle Outfitters, listed on the NYSE as AEO, is a well-known retailer specializing in casual and trendy clothing for young adults. The company is preparing to release its quarterly earnings on September 3, 2025. Analysts predict an earnings per share (EPS) of $0.20 and revenue of approximately $1.23 billion for this period.

AEO is facing challenges in its second-quarter fiscal 2025 results due to weak demand and margin pressure. The company's gross margin is expected to decline because of markdowns and increased costs. Analysts forecast a revenue of $1.2 billion, a 4.5% decrease from the same period last year. The EPS is projected to be $0.20, a significant 48.7% drop from the previous year's EPS of $0.39.

Despite these challenges, there has been a 1.5% upward revision in the consensus EPS estimate over the past month. This revision trend is important as it often correlates with short-term stock price movements. AEO's stock could potentially rise if the actual results exceed expectations when the earnings report is released.

American Eagle Outfitters has a price-to-earnings (P/E) ratio of approximately 11.81, indicating the market's valuation of its earnings. The company's price-to-sales ratio is 0.43, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is 0.74, reflecting the company's total valuation in relation to its sales.

The company's debt-to-equity ratio is 1.20, indicating the proportion of debt used to finance its assets relative to equity. The current ratio is 1.38, suggesting that AEO has a good level of liquidity to cover its short-term liabilities. These financial metrics provide insight into the company's financial health and market valuation.