Wall Street analysts expect Gap (GAP) to post quarterly earnings of $0.55 per share in its upcoming report, which indicates a year-over-year increase of 1.9%. Revenues are expected to be $3.74 billion, up 0.5% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 2.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Gap metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Net Sales- Gap Global- Total' will reach $788.14 million. The estimate indicates a change of +2.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Sales- Banana Republic Global- Total' will likely reach $471.65 million. The estimate indicates a change of -1.5% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net Sales- Old Navy Global- Total' should arrive at $2.14 billion. The estimate points to a change of +1% from the year-ago quarter.
Analysts expect 'Number of Store Locations - Banana Republic - Total' to come in at 408 . The estimate is in contrast to the year-ago figure of 438 .
Analysts predict that the 'Number of Store Locations - Old Navy North America' will reach 1,250 . The estimate is in contrast to the year-ago figure of 1,248 .
The consensus estimate for 'Comparable Store Sales - Old Navy - YoY change' stands at 1.2%. Compared to the present estimate, the company reported 5.0% in the same quarter last year.
The consensus among analysts is that 'Number of Store Locations - Company-operated stores' will reach 2,492 . The estimate is in contrast to the year-ago figure of 2,541 .
According to the collective judgment of analysts, 'Comparable Store Sales - Gap - YoY change' should come in at 4.0%. Compared to the current estimate, the company reported 3.0% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Comparable store sales - YoY change' of 1.7%. Compared to the present estimate, the company reported 3.0% in the same quarter last year.
Analysts forecast 'Square Footage - Total' to reach 29 millions of square feet. The estimate compares to the year-ago value of 30 millions of square feet.
Analysts' assessment points toward 'Number of Store Locations - Athleta North America' reaching 260 . Compared to the current estimate, the company reported 271 in the same quarter of the previous year.
The average prediction of analysts places 'Number of Store Locations - Gap - Total' at 574 . Compared to the current estimate, the company reported 587 in the same quarter of the previous year.
View all Key Company Metrics for Gap here>>>
Shares of Gap have experienced a change of +3.7% in the past month compared to the +2.7% move of the Zacks S&P 500 composite. With a Zacks Rank #5 (Strong Sell), GAP is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The Gap, Inc. (GAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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