Gap Shares Rally On Sold First-quarter Earnings

Xavier Trudeau
Mai 20, 2017

Looking ahead, Saunders says the pressures on Gap will continue, with its sales forecast predicated on the continued success of Old Navy. "We've made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand".

"We of course are not immune to any challenges facing the sector", CEO Art Peck said on a company earnings call. The stock's average target of $28.56 is 23.16% above today's ($23.19) share price. On the opposite end, shares have been trading 1.73% away from the 50-day low price. Generally speaking, earnings are expected to grow in coming quarters. For the last period, the company reported quarter over quarter EPS growth of 3.80% and quarter over quarter sales growth of 1.00%. Further, the top line surpassed the Zacks Consensus Estimate of $3,408 million. The company said, translation of foreign currencies into United States dollars negatively impacted the company's net sales for the first quarter by about 11 million dollars.

Gap Inc reported a surprise rise in quarterly same-store sales, bucking the trend of dismal results in the United States retail industry, as the company benefited from the robust performance at its Old Navy brand. Revenue was flat at $3.44 billion while same-store sales rose 2% in the first quarter, led by an 8% jump in same-store sales at Old Navy. However, results were offset by 4% comps decline for both Gap and Banana Republic brands. In terms of recent volatility, the average for the month is 2.32% and 3.25% for the past week. "However, this is predicated on the continued success of Old Navy". The firm has "Market Perform" rating by FBR Capital given on Tuesday, September 1.

The TTM operating margin is 7.7%. He cites Gap's nimbler supply chain, which has reduced time to market and given the company more flexibility in assessing how product is selling, allowing it to avoid overstocks and heavy markdowns. 5,047 shares valued at $922,738 were sold by Hyslop Gregory L on Wednesday, May 3.

For fiscal 2017, management projects capital expenditure of approximately $625 million, excluding the planned $200 million spending associated with reconstructing the Fishkill distribution center.

The company paid a dividend of 0.23 dollar per share during the first quarter of fiscal year 2017.

The company's shares were up 3.9 per cent at US$24.1 in trading after the bell.

10, 2017, photo shows the sign on a Gap store in the Shadyside shopping district of Pittsburgh. The firm's revenue was up.1% compared to the same quarter previous year. Net sales, are expected to be little lower than this range, owing to the currency challenges.

Now the P/E of The Gap, Inc. stands at 13.71. BGFV and Build-A-Bear Workshop Inc.

Additionally on 3/09/17 Guggenheim "Initiates Coverage On" Gap Inc (NYSE:GPS) to Neutral setting price target at $0 and on 11/28/16 PiperJaffray "Upgrades" the stock to Neutral at $0.

Children's Place, with a long-term earnings growth rate of 8%, has gained almost 10.1% year to date. Year to Date performance value (YTD perf) value is 5.95%.

Build-A-Bear has to its credit a solid earnings surprise history with an average trailing four-quarter beat of 67.5%. Future earnings predictions are perhaps the most essential input when trying to value a company.

Several analysts recently commented on Global Positioning System shares. The analysts estimated mean EPS at 0.6 while the high and low EPS estimate stand at 0.68 and 0.55 respectively. You can even look inside portfolios so exclusive that they are normally closed to new investors.

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