American Eagle Outfitters Inc.’s stock AEO dropped 16% in premarket trading on Tuesday after the midpoint of the retailer’s fourth-quarter operating income forecast range fell short of estimates. American Eagle Outfitters said its third-quarter net income rose to $96.7 million, or 49 cents a share, from $81.27 million, or 42 cents a share, in the year-ago quarter. The company beat the FactSet consensus estimate of 48 cents a share. Revenue increased to $1.3 billion from $1.24 billion and narrowly beat the analyst estimate of $1.28 billion. Looking ahead, American Eagle Outfitters expects fourth-quarter operating income of $105 million to $115 million, compared to the analyst estimate of $114 million.
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