American Eagle Outfitters Sees Q4 EPS Below View; Stock Down

(RTTNews) - American Eagle Outfitters Inc. (AEO) said that it expects earnings per share for the fourth quarter to be in the range of $0.37 to $0.39. The earnings per share guidance is based on comparable sales in the range of flat to a low single digit increase. The guidance excludes potential asset impairment and restructuring charges. Analysts polled by Thomson Reuters expect the company to report earnings of $0.45 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Last year's fourth quarter reported earnings per share of $0.42 included approximately $0.07 of non-recurring items, including a gain on the sale of a distribution center and a lower tax rate related to income tax settlements, federal tax credits and tax strategies. Excluding these items, last year's fourth quarter adjusted earnings per share was $0.35.

In the pre-market trade, AEO is currently trading at $17.10, down $1.81 or 9.57 percent.

The company continues to expect fiscal 2016 capital expenditures to be approximately $160 million, with nearly half related to store remodeling projects and new openings, and the remaining half supporting digital and omni-channel investments.

Net income for the third-quarter grew to $75.76 million or $0.41 per share from $74.11 million or $0.38 per share in the prior year.

Earnings per share from continuing operations rose to $0.41 from $0.35 for the comparable quarter last year. Analysts expected the company to report earnings of $0.41 per share for the third-quarter.

Total net revenue for the third-quarter increased 2% to $940.61 million from $919.07 million last year. Consolidated comparable sales increased 2%, following a 9% increase last year. Wall Street expected revenues of $940.94 million.