American Eagle (AEO) reported earnings on Wed 8/17/16 (b/o)

** charts after earnings **

 

American Eagle beats by $0.02, reports revs in-line; guides Q3 EPS in-line

• Reports Q2 (Jul) earnings of $0.23 per share, $0.02 better thanthe Capital IQ Consensus of $0.21; revenues rose 3.2% year/year to $822.6 mln vs the $821.16 mln Capital IQ Consensus. 
• Consolidated comparable sales increased 3% vs. low single digit guidance and estimates near +3.2%, following an 11% increase last year.
• Gross profit increased 8% to $307 million and as a rate to revenue, expanded 160 basis points to 37.3%. The increase was driven by improved merchandise margin due to lower cost and higher realized selling prices. This was partially offset by increased delivery expense related to growth in digital sales.
• Co issues in-line guidance for Q3, sees EPS of $0.40-0.41 vs. $0.40 Capital IQ Consensus and $0.35 last year; sees low single digit comps, below estimates near +6%.