The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Gap's revenues will grow 7.0% and EPS will increase 63.2%.
The average estimate for revenue is $3.84 billion. On the bottom line, the average EPS estimate is $0.62.
Last quarter, Gap booked revenue of $3.58 billion. GAAP reported sales were 5.6% higher than the prior-year quarter's $3.39 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 $0.49. GAAP EPS of $0.49 for Q2 were 40% higher than the prior-year quarter's $0.35 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 39.9%, 300 basis points better than the prior-year quarter. Operating margin was 11.9%, 200 basis points better than the prior-year quarter. Net margin was 6.8%, 120 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $15.52 billion. The average EPS estimate is $2.26.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 514 members out of 847 rating the stock outperform, and 333 members rating it underperform. Among 272 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Gap a green thumbs-up, and 103 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gap is hold, with an average price target of $29.42.
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