American Eagle shares fall on lukewarm quarterly view
(Reuters) - Shares of teen-clothing retailer American Eagle Outfitters (AEO.N) fell 7 percent on Tuesday as the company's forecast fell short of market expectations.
On its investor day call, the company said it expected operating margins for the year to be around 12.5 and that it was on track to meet its sales forecasts for the third quarter.
"We believe today's stock reaction is a result of the company not at least guiding to the high end or raising third quarter earnings guidance," Evren Kopelman, senior analyst at Wells Fargo Securities wrote in a note to clients. Kopelman rates the stock as outperform.
American Eagle said it was aiming for 2012 sales of $3.44 billion, more or less in line with analysts estimates, according to Thomson Reuters I/B/E/S.
It had said in August that it was expecting to earn $1.33 to $1.36 a share from continuing operations in the third quarter. <ID: nL2E8JM1W9>
Kopelman said the company's operating margin view was below her expectations of 12.6 percent.
Shares of the company were down 7 percent at $20.52 in late morning trade on the New York Stock Exchange.
- Exclusive: Radar data suggests missing Malaysia plane deliberately flown way off course - sources
- Lost passenger jet was diverted deliberately: Malaysian PM |
- Malaysia PM says lost plane's movements indicate a deliberate act
- UPDATE 2-Satellite data shows missing Malaysia plane may have flown thousands of miles-source
- UPDATE 1-Rolls-Royce concurs with Malaysia on missing jet's engine data