American Eagle Outfitters Down 5.24% To $13.25 After Earnings Miss

American Eagle Outfitters Inc (AEO) reported less than expected earnings this afternoon for Q1 2022. Analyst expectations for American Eagle Outfitters earnings per share (EPS) were at $0.25, with the company missing those estimates with a reported EPS of $0.16, leading to a negative surprise of $0.09 per share (-36%). American Eagle Outfitters's earnings were down 67% year-over-year as the firm reported an EPS of $0.48 in its year-ago quarter. The negative annual growth shows the Consumer Cyclical company is performing well amid recent economic conditions. Analyst projections for American Eagle Outfitters revenue came in at a consensus of $1.1 billion. First-Quarter revenues missed estimates for $1.1 billion by $85 million (7%). The company achieved 2% growth year-over-year compared to the firm's revenue of $1 billion from the year-ago quarter. The lower earnings growth relative to revenue signals American Eagle Outfitters has not been able to improve its profit margin. The stock is down 5.24% to $13.25 after the report. The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease. The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data. InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading. American Eagle Outfitters has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 11, putting American Eagle Outfitters in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $11.61 on May 24, 2022 and set a 52-week high on June 25, 2021 at $38.99. American Eagle Outfitters Inc is an apparel and accessory retailer with company stores in U.S., Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has an online business that ships worldwide. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel and accessories for women and men. Geographically, it generates the vast majority of its revenue from the United States.