American Eagle Had A Hot Summer, Analyst Lifts Expectations After Q2 Earnings
Portfolio Pulse from Priya Nigam
American Eagle Outfitters Inc's (NYSE:AEO) shares rose in after-hours trading following the release of its Q2 results. The company's gross margin expanded by 680 basis points to 37.7% in Q2, driven by lower markdowns, transportation and product costs, and delivery, distribution, and warehousing costs. The company also raised its full-year guidance due to stronger-than-expected Q2 results and continued momentum. Telsey Advisory Group maintained a Market Perform rating but raised the price target from $15 to $19.
September 07, 2023 | 2:50 pm
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POSITIVE IMPACT
American Eagle Outfitters' Q2 results exceeded expectations, leading to a rise in its shares. The company's gross margin expanded significantly, and it raised its full-year guidance. Telsey Advisory Group raised the price target from $15 to $19.
The company's strong Q2 results and the subsequent rise in its shares, along with the raised full-year guidance and increased price target by Telsey Advisory Group, indicate a positive short-term impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100