Zacks Research Has Bearish Estimate for AEO Q2 Earnings

American Eagle Outfitters, Inc. (NYSE:AEO) – Analysts at Zacks Research decreased their Q2 2027 earnings estimates for shares of American Eagle Outfitters in a report issued on Wednesday, March 18th. Zacks Research analyst Team now expects that the apparel retailer will post earnings per share of $0.28 for the quarter, down from their previous estimate of $0.41. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for American Eagle Outfitters’ current full-year earnings is $1.70 per share. Zacks Research also issued estimates for American Eagle Outfitters’ Q3 2027 earnings at $0.52 EPS, Q4 2027 earnings at $0.79 EPS, Q2 2028 earnings at $0.33 EPS, Q3 2028 earnings at $0.56 EPS, Q4 2028 earnings at $0.90 EPS, FY2028 earnings at $1.90 EPS and FY2029 earnings at $2.01 EPS.

Other equities research analysts have also issued reports about the company. Royal Bank Of Canada set a $23.00 price objective on American Eagle Outfitters in a research note on Wednesday, December 3rd. Barclays cut their target price on American Eagle Outfitters from $24.00 to $19.00 and set an “underweight” rating on the stock in a research report on Thursday, March 5th. Morgan Stanley set a $23.00 price target on American Eagle Outfitters in a research report on Wednesday, December 3rd. JPMorgan Chase & Co. raised American Eagle Outfitters from an “underweight” rating to a “neutral” rating and lifted their price target for the stock from $14.00 to $20.00 in a research note on Wednesday, December 3rd. Finally, Telsey Advisory Group cut their price objective on American Eagle Outfitters from $28.00 to $25.00 and set a “market perform” rating on the stock in a report on Thursday, March 5th. One research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $21.75.

American Eagle Outfitters Trading Up 1.4%

American Eagle Outfitters stock opened at $17.50 on Friday. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of 15.63, a price-to-earnings-growth ratio of 1.23 and a beta of 1.39. American Eagle Outfitters has a 1 year low of $9.27 and a 1 year high of $28.46. The firm’s 50 day moving average price is $23.04 and its two-hundred day moving average price is $20.97. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.71 and a current ratio of 1.52.

American Eagle Outfitters (NYSE:AEO) last released its earnings results on Wednesday, March 4th. The apparel retailer reported $0.84 EPS for the quarter, beating the consensus estimate of $0.71 by $0.13. The business had revenue of $1.76 billion during the quarter, compared to analyst estimates of $1.74 billion. American Eagle Outfitters had a net margin of 3.49% and a return on equity of 16.76%. The business’s quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 earnings per share.

American Eagle Outfitters Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Friday, April 10th. American Eagle Outfitters’s payout ratio is 44.64%.

Insiders Place Their Bets

In other news, Director Cary D. Mcmillan sold 1,896 shares of American Eagle Outfitters stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $26.21, for a total transaction of $49,694.16. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Noel Joseph Spiegel sold 1,896 shares of the company’s stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $25.66, for a total value of $48,651.36. The disclosure for this sale is available in the SEC filing. 8.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On American Eagle Outfitters

Several institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada lifted its position in shares of American Eagle Outfitters by 24.8% in the first quarter. Royal Bank of Canada now owns 162,243 shares of the apparel retailer’s stock worth $1,885,000 after purchasing an additional 32,191 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in American Eagle Outfitters by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 105,726 shares of the apparel retailer’s stock valued at $1,229,000 after purchasing an additional 4,599 shares in the last quarter. Jones Financial Companies Lllp grew its position in American Eagle Outfitters by 1,238.2% during the first quarter. Jones Financial Companies Lllp now owns 52,551 shares of the apparel retailer’s stock valued at $611,000 after purchasing an additional 48,624 shares in the last quarter. Empowered Funds LLC increased its stake in American Eagle Outfitters by 9.6% in the 1st quarter. Empowered Funds LLC now owns 15,937 shares of the apparel retailer’s stock valued at $185,000 after buying an additional 1,398 shares during the period. Finally, Envestnet Asset Management Inc. increased its stake in American Eagle Outfitters by 20.9% in the 2nd quarter. Envestnet Asset Management Inc. now owns 82,615 shares of the apparel retailer’s stock valued at $795,000 after buying an additional 14,260 shares during the period. Hedge funds and other institutional investors own 97.33% of the company’s stock.

Key American Eagle Outfitters News

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Zacks Research raised its FY2028 EPS view to $1.90 (from $1.70) and issued a FY2029 estimate of $2.01, while increasing several quarterly forecasts (notably Q3/Q4 lifts). The higher multi?year earnings trajectory supports the rally in AEO. Zacks estimate changes
• Positive Sentiment: An analyst note set a $21.75 price target for AEO, providing upside from current trading levels and likely encouraging buyers. Analysts Set Target
• Positive Sentiment: Coverage pieces flagged improving relative strength for AEO, which can attract momentum and ETF/quant flows into the stock. Relative strength article
• Neutral Sentiment: Zacks retains a “Hold” rating even as it adjusts models; the rating tempers how strongly upgrades translate into sustained buy-side conviction. Zacks rating
• Neutral Sentiment: Popular outlets published valuation and capital?allocation pieces that dig into whether AEO’s upgrades clear up or complicate the longer?term strategy; these articles provide context but contain mixed conclusions. Valuation piece Capital allocation piece
• Negative Sentiment: Offsetting some of the upbeat revisions, Zacks trimmed Q2 estimates for both 2027 and 2028 materially (Q2 2027 cut to $0.28 from $0.41; Q2 2028 cut to $0.33 from $0.44), signaling potential seasonality or near?term margin pressure that could cap upside. Q2 cuts

About American Eagle Outfitters

American Eagle Outfitters, Inc (NYSE: AEO) is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company’s flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.