Gap: Here’s What Investors Need to Know Before Earnings

Gap (NYSE:GPS) will report earnings after markets close on Thursday, August 22nd. The Gap, Inc., is an international specialty retailer operating retail and outlet stores. The Company sells casual apparel, accessories and personal care products for men, women, and children. The Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan.

Here is your Cheat Sheet to Gap Earnings:

Earnings Expectations: Analysts expect earnings of $0.64 per share on revenues of $3.83 billion. Currently, the company’s P/E ratio stands at 16.93.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.71 to a profit $0.7. For the current year, the average estimate is a profit of $2.78, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Gap has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 14,526 14,197 14,549 14,549 15,651
Diluted EPS ($) 1.34 1.58 1.88 1.56 2.33

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013 Apr. 30, 2013
Revenue ($) in millions 3,575.00 3,864.00 4,725.00 3,729.00
Diluted EPS ($) 0.49 0.63 0.73 0.71

Past Performance:
Gap has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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

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