American Eagle Q4 Profit Surges 81%, Matching View (AEO)

in Gold Gold Investment by admin — March 10, 2010 6:58 am | no comments

Teen clothing retailer American Eagle Outfitters ( AEO ) said Wednesday that its fourth quarter profit jumped 81% from last year, matching analyst estimates. The Pittsburgh-based company reported fourth quarter net income of $59.3 million, or 29 cents per share, compared with $32.7 million, or 16 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 33 cents per share. Sales rose more than 7% from last year, to $972 million, while same-store sales were up 5%. On average, Wall Street analysts expected a matching profit of 33 cents per share, on lower revenue of $952.3 million. Looking ahead, the company forecast first quarter earnings to range from 15 to 17 cents per share, which would meet or exceed analysts’ current estimates of 15 cents per share for the quarter. American Eagles shares rose $1, or +5.8%, in premarket trading Wednesday. The Bottom Line We had removed shares of AEO from our “recommended” list last Sept.29, when the stock was trading at $15.90. The company has a 2.33% dividend yield, based on last night’s closing stock price of $17.15. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price levels. We would remain on the sidelines for now. American Eagle Outfitters ( AEO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .