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Gap Inc. (NYSE:GPS) is scheduled to report its Q2 2012 results on August 16, 2012, after the bell. The street expects EPS and revenue of $0.48 and $3.53B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from GPS and the news from its closest competitors.

Gap Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last four quarters the company has met or beaten analysts' estimates. In the last quarter it reported $0.47 EPS, beating analyst estimates of $0.46.

Gap Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.48 based on 25 analysts' estimates, up from $0.35 a year ago. Revenue estimates are $3.53B, up from $3.39B a year ago. The median target price by analysts for the stock is $34.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 1, 2012, Caris & Company upgraded the company from Average to Above Average.
  • On March 29, 2012, Janney Mntgmy Scott upgraded the company from Neutral to Buy.
  • On February 21, 2012, Barclays Capital reiterated Equal Weight rating for the company.

Latest News

  • On August 2, 2012, The Gap, Inc. announced that for second quarter of 2012, it expects diluted earnings per share to be in the range of $0.47 to $0.48, compared with $0.35 for the second quarter last year.
  • On May 17, 2012, The Gap, Inc. announced that its Board of Directors authorized a quarterly dividend of $0.125 per share payable on or after July 24, 2012 to shareholders of record at the close of business on July 3, 2012.
  • On May 17, 2012, The Gap, Inc. announced that the Company raised its guidance for fiscal 2012 diluted earnings per share (NYSEARCA:EPS) to be in the range of $1.78 to $1.83.
  • On May 3, 2012, The Gap, Inc. announced that for first quarter of 2012, it expects earnings per share in the range of $0.44 to $0.46. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.40 for first quarter of 2012.
  • On March 19, 2012, Dow Jones reported that The Gap, Inc. (Gap) has opened its first store in South Africa. The expansion in the region comes as the Company is closing stores in North America and opening outlets in other emerging markets.
  • On February 23, 2012, The Gap, Inc. announced that for fiscal 2012, it expects diluted earnings per share to be in the range of $1.75 - $1.80. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.79 for fiscal 2012.
  • On February 23, 2012, The Gap, Inc. announced that it has approved a new $1 billion share repurchase authorization and approved a plan to increase the annual dividend per share by 11%, from $0.45 in fiscal year 2011 to $0.50 for fiscal year 2012.

Competitors

American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO), The TJX Companies (NYSE:TJX), and Urban Outfitters (NASDAQ:URBN) are peers for comparison for Gap and the table below provides the key metrics for these companies and the industry.

Gap Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

GPS Chart

GPS data by YCharts

Competitors' Latest Development

  • On August 1, 2012, Abercrombie & Fitch announced that for the second quarter of 2012, it expects diluted earnings per share of approximately $0.15-$0.18. Based on a lower sales trend than previously projected, the Company now expects fiscal 2012, diluted earnings per share of approximately $2.50 to $2.75. This projection assumes same store sales to be down 10% for the second half of the year, consistent with the second quarter trend.
  • On August 1, 2012, American Eagle Outfitters, Inc. announced that for second quarter of 2012, it is raising adjusted EPS outlook to $0.19 to $0.21.
  • On July 5, 2012, TJX Companies Inc raised second quarter of 2013 and fiscal 2013 guidance. The Company expects second quarter of 2013 earnings per share in the range of $0.52-$0.53 and EPS of $2.31-$2.39 for fiscal 2013.
  • On May 31, 2012, TJX Companies Inc announced that with above-plan sales in May, it now expect second quarter 2013 earnings per share to be at the high end of previously estimated range of $0.47-$0.50.
  • On May 17, 2012, Aeropostale Inc announced that for second quarter of 2012, it expects earnings in the range of $0.03 to $0.05 per diluted share . This compares to earnings of $0.04 per diluted share for the second quarter of 2011, which included a non-recurring pre-tax benefit to the Company's gross profit of $8.7 million, or $0.06 per diluted share, resulting from the resolution of a dispute with one of the Company's merchandise vendors surrounding prior period allowances.
  • On May 15, 2012, TJX Companies Inc announced that for the second quarter of 2013, it expects diluted earnings per share to be in the range of $0.47 to $0.50. For fiscal 2013, it is raising its guidance for diluted earnings per share to be in the range of $2.27 to $2.37. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $0.51 for the second quarter of 2013.
  • On May 3, 2012, Aeropostale Inc announced that based on the better than expected performance for the quarter, the Company new expects first quarter 2012 earnings in the range of $0.12-$0.13 per diluted share, versus its previously issued guidance range of $0.08-$0.10 per diluted share.
  • On May 2, 2012, American Eagle Outfitters, Inc. announced that for the first quarter of 2012, it expects earnings to be in the range of $0.18-$0.20 per diluted share .
  • On April 3, 2012, TJX Companies Inc announced that its Board of Directors has raised the amount of its quarterly dividend by 21% from the last dividend paid. The Board declared a regular quarterly dividend in the amount of $.115 per share, payable May 31, 2012, to shareholders of record on May 10, 2012.
  • On March 21, 2012, Urban Outfitters, Inc. announced that Eric Artz is stepping down as Chief Financial Officer (NASDAQ:CFO) effective April 3, 2012, and is being replaced by Frank Conforti, the Company's Chief Accounting Officer.
  • On March 8, 2012, Aeropostale Inc announced that for the first quarter of 2012, the Company expects earnings in the range of $0.08 to $0.10 per diluted share . According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.12 for the first quarter of 2012.
  • On March 7, 2012, American Eagle Outfitters, Inc. announced that for fiscal 2012, the Company is planning a modest sales increase. According to I/B/E/S Estimates, analysts are expecting the Company to report revenues of $3.33 billion for fiscal 2012.
  • On February 22, 2012, TJX Companies Inc announced that for fiscal 2013, on a GAAP basis, the Company expects diluted earnings per share to be in the range of $2.21 to $2.31. For the first quarter of 2013, on a GAAP basis, it expects fully diluted earnings per share to be in the range of $0.45 to $0.47. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $2.20 for fiscal 2013; EPS of $0.44 for the first quarter of 2013.
  • On February 16, 2012, Abercrombie & Fitch announced that for fiscal 2012, it expects earnings per share in the range of $3.50-$3.75. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $3.48 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $16.95B and is currently trading at $34.64 with a 52 week range of $15.08 - $34.92. The stock's year-to-date performance has been 88.57%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.