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The Best Options Trading Strategy for Gap (GPS) Earnings
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On Thursday, August 18th, Gap Inc. (GPS - Free Report) will release its Q2 2016 earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are up about 1.1% year-to-date.
Join Dave this Thursday, August 18th, at 1 pm to see his thoughts on Gap’s past earnings, looks at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.
Furthermore, Dave will look into some potential options trades for investors looking to make a play on Gap ahead of earnings.
Gap in Focus
The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands.
Gap met expectations in its Q1 2016 earnings report, posting an EPS that was equal to the Zacks Consensus Estimate.
GPS has an average EPS surprise of 0% for the last four quarters. In Q2, Q3, and Q4 2015, GPS met each respective Zacks Consensus Estimate.
Heading into this earnings report, our Most Accurate Estimate forGap is $0.59, the same as the Zacks Consensus Estimate.
Like other retailers, GAP has stagnated due to a stronger U.S. dollar and slow adjustment to fashion trend shifts.
On August 8th, GAP released their July 2016 and second quarter sales results. The company reported a $20 million year-over-year net sales decrease to $1.1 billion, along with a four percent decrease in comparable sales in July, compared to a three percent decrease at the same point last year.
GAP subsidiary Banana Republic has been the biggest loser, seeing a nine percent decrease in comparable sales results in Q2, compared to a four percent loss last year. Old Navy, which had been GAP’s redeeming factor in recent quarters, has seen flat comparable sales growth in Q2, compared to a three percent increase last year.
The company has closed down a notable chunk of its locations in recent years, announcing in June of 2015 that it would close a quarter of its stores, and then announcing in May of this year that it would close another 75 stores by the end of fiscal year 2016.
Although the company is working towards restructuring its strategic plan, the road ahead is perilous.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
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The Best Options Trading Strategy for Gap (GPS) Earnings
On Thursday, August 18th, Gap Inc. (GPS - Free Report) will release its Q2 2016 earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are up about 1.1% year-to-date.
Join Dave this Thursday, August 18th, at 1 pm to see his thoughts on Gap’s past earnings, looks at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.
Furthermore, Dave will look into some potential options trades for investors looking to make a play on Gap ahead of earnings.
Gap in Focus
The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands.
Gap met expectations in its Q1 2016 earnings report, posting an EPS that was equal to the Zacks Consensus Estimate.
GPS has an average EPS surprise of 0% for the last four quarters. In Q2, Q3, and Q4 2015, GPS met each respective Zacks Consensus Estimate.
GAP INC Price, Consensus and EPS Surprise
GAP INC Price, Consensus and EPS Surprise | GAP INC Quote
Heading into this earnings report, our Most Accurate Estimate forGap is $0.59, the same as the Zacks Consensus Estimate.
Like other retailers, GAP has stagnated due to a stronger U.S. dollar and slow adjustment to fashion trend shifts.
On August 8th, GAP released their July 2016 and second quarter sales results. The company reported a $20 million year-over-year net sales decrease to $1.1 billion, along with a four percent decrease in comparable sales in July, compared to a three percent decrease at the same point last year.
GAP subsidiary Banana Republic has been the biggest loser, seeing a nine percent decrease in comparable sales results in Q2, compared to a four percent loss last year. Old Navy, which had been GAP’s redeeming factor in recent quarters, has seen flat comparable sales growth in Q2, compared to a three percent increase last year.
The company has closed down a notable chunk of its locations in recent years, announcing in June of 2015 that it would close a quarter of its stores, and then announcing in May of this year that it would close another 75 stores by the end of fiscal year 2016.
Although the company is working towards restructuring its strategic plan, the road ahead is perilous.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.