Q4 Preview: Analysts Mixed Into Aeropostale (ARO) Results; Guidance, Promotions Will Be In Focus

Shares of Aeropostale (NYSE: ARO) have been volatile Thursday but are now near session lows ahead of the company's fourth-quarter 2012 earnings report, expected out after the market closes this afternoon.

Analysts are looking for the retailer to post a quarterly profit of 38 cents per share on sales of $804.6 million. Aeropostale reported earnings of 95 cents per share during the same quarter of 2011, on sales of $839.3 million. Last quarter Aeropostale saw earnings of 30 cents per share on sales of $596.5 million.

Shares of Aeropostale are up almost 24 percent year to date.

According to data from Bloomberg, seven analyst firms rate Aero a Buy, 18 are at Hold, and three recommending selling the stock.

Analyst Commentary:

• Brean Murray recently boosted its price target from $19 to $22 while reiterating a Buy rating. The firm is looking for fourth-quarter earnings of 39 cents per share. Although Brean Murray sees inline results and likely conservative guidance, "it is becoming increasingly clear that Aeropostale has the right inventory mix and, increasingly, the right fashion looks to drive material upside in FY13 against some of the easiest comparisons in retail and lower material costs in 2H."
  
  
• Wedbush sees quarterly earnings of 38 cents per share. The firm is anticipating a pullback in the stock following the report amid "below consensus Q1 EPS guidance as our checks suggest the retailer remains promotional QTD and is likely impacted by higher input costs of +LSD-MSD." Wedbush warns "the stock has been embedded with rich investor expectations at current valuation..."
  
  The firm maintains a Neutral rating and $14 price target.

Stay tuned to our Earnings category to get all breaking earnings news.

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