Predicting American Eagle’s Stock Response to Upcoming Earnings Report

Published On: May 29, 2025 1:47 am

American Eagle Outfitters Set to Report Earnings, Analysts Predict Loss

American Eagle Outfitters (NYSE: AEO) will announce its fiscal first-quarter earnings on Thursday, May 29, 2025. Analysts estimate an earnings loss of 22 cents per share on $1.09 billion in revenue. This shows a decline from the previous year’s 34 cents per share and $1.14 billion in revenue. Historically, AEO stock has decreased 60% of the time after earnings announcements, with a median drop of 5.4% and a maximum decline of 14%.

For the year, AEO expects low single-digit sales declines. Current market capitalization stands at $2.0 billion, with annual revenue of $5.3 billion. The company recorded $445 million in operating profits and net income of $329 million last year.

Historical Earnings Performance Insights

Looking at past earnings data over the last five years, AEO experienced 20 recorded instances, with 8 positive and 12 negative one-day returns. Positive returns occurred about 40% of the time, which drops to 36% when narrowing the timeframe to three years. The median of positive returns was 2.4%, while negative returns averaged -5.4%.

A summary table below captures additional data on 5-day and 21-day returns after earnings announcements.

Analyzing 1D, 5D, and 21D Return Correlations

A strategic approach involves examining correlations between short-term and medium-term returns following earnings. Higher correlations can guide trading decisions. For instance, if 1D returns are positive and show the strongest correlation with 5D returns, a trader may choose a long position for the following five days.