Wall Street brokerages forecast that Gap Inc (NYSE:GPS) will report sales of $4.00 billion for the current fiscal quarter, Zacks Investment Research reports. Nine analysts have issued estimates for GAP’s earnings, with the lowest sales estimate coming in at $3.82 billion and the highest estimate coming in at $4.10 billion. GAP reported sales of $3.84 billion in the same quarter last year, which would suggest a positive year over year growth rate of 4.2%. The company is expected to announce its next quarterly earnings results on Thursday, November 15th.
According to Zacks, analysts expect that GAP will report full-year sales of $16.49 billion for the current fiscal year, with estimates ranging from $16.15 billion to $16.73 billion. For the next fiscal year, analysts expect that the firm will report sales of $16.92 billion per share, with estimates ranging from $16.52 billion to $17.50 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side research analysts that that provide coverage for GAP.
GAP (NYSE:GPS) last released its quarterly earnings results on Thursday, August 23rd. The apparel retailer reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.72 by $0.04. GAP had a net margin of 5.43% and a return on equity of 29.25%. The firm had revenue of $4.09 billion for the quarter, compared to analysts’ expectations of $4.02 billion. During the same quarter last year, the company earned $0.58 EPS. The firm’s revenue for the quarter was up 7.5% compared to the same quarter last year.
Several equities research analysts have issued reports on the stock. Barclays set a $39.00 target price on shares of GAP and gave the stock a “buy” rating in a research note on Sunday, May 27th. MKM Partners lowered their target price on shares of GAP to $32.00 and set a “neutral” rating on the stock in a research note on Tuesday, May 29th. Citigroup raised shares of GAP from a “sell” rating to a “neutral” rating and set a $28.00 target price on the stock in a research note on Monday, August 27th. They noted that the move was a valuation call. Credit Suisse Group lowered their target price on shares of GAP from $35.00 to $33.00 and set a “neutral” rating on the stock in a research note on Friday, May 25th. Finally, ValuEngine raised shares of GAP from a “hold” rating to a “buy” rating in a research note on Thursday, May 24th. Twenty equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $33.74.
GPS traded down $0.06 on Tuesday, hitting $28.96. 398,100 shares of the company’s stock were exchanged, compared to its average volume of 5,207,605. GAP has a fifty-two week low of $25.28 and a fifty-two week high of $35.68. The company has a quick ratio of 1.02, a current ratio of 1.96 and a debt-to-equity ratio of 0.37. The stock has a market cap of $11.64 billion, a PE ratio of 13.60, a price-to-earnings-growth ratio of 1.30 and a beta of 0.62.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 31st. Stockholders of record on Wednesday, October 10th will be given a dividend of $0.2425 per share. The ex-dividend date of this dividend is Tuesday, October 9th. This represents a $0.97 annualized dividend and a dividend yield of 3.35%. GAP’s payout ratio is 45.54%.
In other news, Director William Sydney Fisher sold 1,000,000 shares of the business’s stock in a transaction dated Tuesday, June 19th. The shares were sold at an average price of $32.37, for a total transaction of $32,370,000.00. Following the transaction, the director now owns 10,760,396 shares of the company’s stock, valued at approximately $348,314,018.52. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 27.30% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the stock. Nikko Asset Management Americas Inc. purchased a new stake in GAP in the 2nd quarter valued at about $634,000. Pendal Group Ltd increased its stake in GAP by 52.9% during the second quarter. Pendal Group Ltd now owns 18,629 shares of the apparel retailer’s stock worth $603,000 after purchasing an additional 6,447 shares during the period. Suntrust Banks Inc. increased its stake in GAP by 83.3% during the first quarter. Suntrust Banks Inc. now owns 37,506 shares of the apparel retailer’s stock worth $1,169,000 after purchasing an additional 17,043 shares during the period. JPMorgan Chase & Co. increased its stake in GAP by 25.8% during the first quarter. JPMorgan Chase & Co. now owns 12,542,927 shares of the apparel retailer’s stock worth $391,339,000 after purchasing an additional 2,575,906 shares during the period. Finally, FIL Ltd increased its stake in GAP by 227.7% during the first quarter. FIL Ltd now owns 58,139 shares of the apparel retailer’s stock worth $1,814,000 after purchasing an additional 40,399 shares during the period. Hedge funds and other institutional investors own 57.67% of the company’s stock.
GAP Company Profile
Gap, Inc operates as a global apparel retail company. It offers apparel, accessories, and personal care products for men, women and children. The company operates through segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Intermix. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody and GapFit collections.
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