Gap (NYSE: GPS ) is expected to report Q1 earnings on May 23. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Gap's revenues will grow 4.9% and EPS will expand 40.4%.
The average estimate for revenue is $3.66 billion. On the bottom line, the average EPS estimate is $0.66.
Last quarter, Gap reported revenue of $4.73 billion. GAAP reported sales were 10% higher than the prior-year quarter's $4.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.73. GAAP EPS of $0.73 for Q4 were 62% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 37.6%, 480 basis points better than the prior-year quarter. Operating margin was 12.9%, 380 basis points better than the prior-year quarter. Net margin was 7.4%, 230 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $16.22 billion. The average EPS estimate is $2.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 533 members out of 848 rating the stock outperform, and 315 members rating it underperform. Among 269 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give Gap a green thumbs-up, and 75 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gap is outperform, with an average price target of $38.56.
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