The Gap Inc. Third Quarter Earnings Cheat Shet Sneak Peek

S&P 500 (NYSE:SPY) component The Gap, Inc. (NYSE:GPS) will unveil its latest earnings on Thursday, November 17, 2011. The Gap is an international specialty retailer that sells casual apparel, accessories and personal care products for men, women, and children.

The Gap, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 37 cents per share, a decline of 22.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 34 cents. Between one and three months ago, the average estimate moved down. It has risen from 33 cents during the last month. For the year, analysts are projecting profit of $1.49 per share, a decline of 20.7% from last year.

Past Earnings Performance: Last quarter, the company reported net income of 35 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $3.61 billion in revenue this quarter, a decline of 1.1% from the year ago quarter. Analysts are forecasting total revenue of $14.65 billion for the year, a decline of 0.1% from last year’s revenue of $14.66 billion.

Analyst Ratings: Analysts seem relatively indifferent about Gap with 22 of 28 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 19.2% to $189 million (35 cents a share) from $234 million (36 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.1% to $3.39 billion from $3.32 billion.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 22.8% in the first quarter.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 1%.

Competitors to Watch: Urban Outfitters, Inc. (NASDAQ:URBN), Abercrombie & Fitch Co. (NYSE:ANF), The Gymboree Corporation (GYMB), The Buckle, Inc. (NYSE:BKE), American Eagle Outfitters (NYSE:AEO), J. Crew Group, Inc. (NYSE:JCG), Aeropostale, Inc. (NYSE:ARO), Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), The Walking Co. Hldgs., Inc. (WALK), and The Wet Seal, Inc. (NASDAQ:WTSLA).

Stock Price Performance: During August 18, 2011 to November 11, 2011, the stock price had risen $4.91 (31.8%) from $15.42 to $20.33. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 18, 2011 when shares rose for 13-straight days, rising 21.1% (+$3.95) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 6.9% (-$1.17) over that span. Shares are down $1.32 (-6.1%) year to date.

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

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