Gap Non-GAAP EPS of -$0.02 beats by $0.12, revenue of $4.53B beats by $40M

• Gap press release (NYSE:GPS): Q4 Non-GAAP EPS of -$0.02 beats by $0.12.
• Revenue of $4.53B (+2.5% Y/Y) beats by $40M.
• Shares +10.6%.
• Comparable sales were up 3% year-over-year and increased 3% versus 2019.
• Returned over $400 million to shareholders in fiscal 2021 through dividend program and share repurchase plan.
• The company ended fiscal year 2021 with 3,399 store locations in over 40 countries, of which 2,835 were company operated.
• The company expects to deliver operating margin of 6.3% to 6.8% on a reported basis and 6.0% to 6.5% on an adjusted basis in fiscal year 2022.
• Fiscal year 2022 reported diluted earnings per share is expected to be in the range of $1.95 to $2.15 with adjusted diluted earnings per share in the range of $1.85 to $2.05.

Comments

[chimcentral]

with the expected growth in earnings forecast for the next few years, divvy over 4% AND increase, GPS is currently undervalued at around $15. i would consider it "valued" in the $22 range, but wouldn't consider selling at all there.

[testfd]

@chimcentral

yes its valued in the current envioment at 22 to 24...it was just at 18 ish...i see resistance there...lets see

[MLP Trader]

Bought this like crazy after the dividend increase. I can't believe anybody thought earnings would disappoint after a divi increase....

[testfd]

@MLP Trader

Congrats and better days ahead for the gap..and yes once the divy increase, it was more safe.....this is heavily shorted....and a short squeeze is long overdue!