Shares of Gap Inc. GPS were up 7.7% Thursday in after-hours trading as the company raised its fiscal 2017 outlook following the better-than-expected third-quarter results. This was the company’s third straight quarter of positive earnings surprise while it recorded sixth consecutive sales beat. Also, comparable store sales (comps) reflected strength for the fourth quarter owing to continued momentum at key areas of the company’s business.
However, foreign currency adversely impacted this Zacks Rank #4 (Sell) company’s bottom line, which declined on a year-over-year basis.
Nonetheless, the stock gained 21.3% in the last three months, outperforming the industry’s growth of 14.2%.
Q3 Highlights
Gap’s adjusted earnings of 58 cents per share in the fiscal third quarter surpassed the Zacks Consensus Estimate of 55 cents. However, the bottom line declined 3.3% from 60 cents earned in the year-ago period. Currency dented earnings per share growth by about 3 percentage points. Also, on a GAAP basis, earnings came in at 58 cents compared with 51 cents in the prior-year period.
Gap, Inc. (The) Price, Consensus and EPS Surprise
Gap, Inc. (The) Price, Consensus and EPS Surprise | Gap, Inc. (The) Quote
