GAP (NYSE:GPS) Posts Earnings Results, Misses Expectations By $0.23 EPS

GAP (NYSE:GPS) announced its quarterly earnings results on Tuesday. The apparel retailer reported $0.27 EPS for the quarter, missing the Zacks’ consensus estimate of $0.50 by ($0.23), MarketWatch Earnings reports. The firm had revenue of $3.94 billion for the quarter, compared to analyst estimates of $4.43 billion. GAP had a net margin of 4.53% and a return on equity of 24.45%. The business’s revenue for the quarter was down 1.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.25 earnings per share. GAP updated its FY 2021 guidance to $1.250-$1.400 EPS and its FY22 guidance to $1.25-1.40 EPS.

Shares of GPS opened at $17.84 on Thursday. The stock’s 50-day simple moving average is $23.56 and its 200 day simple moving average is $27.95. The stock has a market capitalization of $6.71 billion, a price-to-earnings ratio of 9.10, a price-to-earnings-growth ratio of 0.92 and a beta of 1.67. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.07 and a current ratio of 1.70. GAP has a 52-week low of $17.71 and a 52-week high of $37.63.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 26th. Investors of record on Wednesday, January 5th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, January 4th. This represents a $0.48 dividend on an annualized basis and a yield of 2.69%. GAP’s dividend payout ratio (DPR) is 24.49%.

In related news, CEO Sonia Syngal sold 6,945 shares of the stock in a transaction dated Tuesday, November 16th. The stock was sold at an average price of $24.71, for a total transaction of $171,610.95. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 41.39% of the company’s stock.

GPS has been the topic of a number of recent analyst reports. TheStreet lowered GAP from a “b-” rating to a “c+” rating in a research note on Thursday, August 19th. JPMorgan Chase & Co. lowered GAP from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $39.00 to $22.00 in a research note on Wednesday. UBS Group dropped their price target on GAP from $31.00 to $25.00 and set a “neutral” rating on the stock in a research note on Wednesday. Morgan Stanley decreased their price objective on GAP from $25.00 to $20.00 and set an “equal weight” rating for the company in a report on Wednesday. Finally, Telsey Advisory Group decreased their price objective on GAP from $33.00 to $24.00 and set a “market perform” rating for the company in a report on Wednesday. Sixteen equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, GAP currently has an average rating of “Hold” and an average price target of $26.53.

GAP Company Profile

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. 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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Earnings History for GAP (NYSE:GPS)

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