Aeropostale Third Quarter Earnings Sneak Peek

Aeropostale, Inc. (NYSE:ARO) will unveil its latest earnings on Wednesday, November 28, 2012. Aeropostale is a mall-based retailer that sells casual apparel and accessories for young adults.

Aeropostale, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 29 cents per share, a decline of 3.3% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of 96 cents per share, a rise of 6.7% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported 0 cents per share versus a mean estimate of 0 cents per share. In the first quarter, the company beat estimates by 0 cents.

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A Look Back: In the second quarter, profit fell 97.6% to $71,000 (0 cents a share) from $2.9 million (4 cents a share) the year earlier, meeting analyst expectations. Revenue rose 3.7% to $485.3 million from $468.2 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.09 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.44 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 30.7% to $230.8 million while assets rose 11.9% to $482.3 million.

Analyst Ratings: With 12 analysts rating the stock a buy, one rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.8% in revenue from the year-earlier quarter to $601.5 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)