Gap Earnings: Here’s Why the Stock is Up Now

Gap Inc. (NYSE:GPS) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1%.

Gap Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 30.61% to $0.64 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 8.25% to $3.87 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gap Inc. reported adjusted EPS income of $0.64 per share. By that measure, the company met the mean analyst estimate of $0.64. It beat the average revenue estimate of $3.83 billion.

Quoting Management: “We delivered strength in both our top and bottom lines this quarter,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “As we move into the second half of the year, we remain focused on growing revenue and driving continued momentum across our portfolio of brands.”

Key Stats (on next page)…

Revenue increased 3.78% from $3.73 billion in the previous quarter. EPS decreased 9.86% from $0.71 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.70 and has not changed. For the current year, the average estimate has moved up from a profit of $2.71 to a profit of $2.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)