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The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at 20 cents per share, suggesting 126.7% growth from the year-ago quarter’s actual. The consensus estimate for the fiscal quarter’s earnings has moved up by a penny in the past seven days. For revenues, the consensus mark is pegged at $4.21 billion, indicating a 0.7% drop from the year-ago quarter’s reported figure.
In the last reported quarter, Gap’s earnings beat the Zacks Consensus Estimate by 195%. The company delivered an earnings surprise of 137.9%, on average, in the trailing four quarters.
Key Factors to Note
Gap’s fourth-quarter fiscal 2023 performance is expected to have gained from improved margins, driven by lower airfreight and improved promotional activity. Lower advertising expenses and technology investments from cost-saving actions also bode well. The company has been aggressively undertaking cost-management actions, which are expected to have improved its performance in the to-be-reported quarter. We expect an adjusted gross margin expansion of 130 basis points for the fiscal fourth quarter.
The company has been on track with the execution of its Power Plan 2023, which focuses on opening highly profitable Old Navy and Athleta stores while closing the underperforming Gap and Banana Republic stores.
However, the uncertain macro and consumer environments are expected to have taken a toll on Gap’s top-line performance in the to-be-reported quarter. Rising prices of essential commodities are likely to have hurt lower-income consumers' spending on non-essentials like apparel. On its last earnings call, management projected fiscal fourth-quarter total company net sales growth, including the 14th week, to be flat to slightly negative. We expect net sales to decline 0.7% year over year for the fiscal fourth quarter.
What the Zacks Model Unveils
Our proven model predicts a likely earnings beat for Gap this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Gap currently has an Earnings ESP of +54.71% and a Zacks Rank of 1.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies, which, according to our model, have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. AEO is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.66 billion, indicating 11.2% growth from that reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for American Eagle’s fiscal fourth-quarter earnings is pegged at 50 cents per share, indicating 35.1% growth from the year-ago quarter's actuals. The consensus mark has been stable in the past 30 days.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. DKS is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, implying 4.2% growth from that reported in the year-ago quarter.
The consensus estimate for DKS’ fiscal fourth-quarter earnings is pegged at $3.33 per share, indicating year-over-year growth of 13.7%. The consensus mark has moved up 1.2% in the past 30 days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +5.21% and a Zacks Rank of 3. NKE is likely to register top and bottom-line decline in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.3 billion, suggesting a 0.8% drop from the figure reported in the year-ago quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 70 cents per share, suggesting an 11.4% decline from the year-ago quarter. The consensus mark has moved down a couple of cents in the past 30 days.
Image: Bigstock
Gap (GPS) to Report Q4 Earnings: What's in the Offing?
The Gap, Inc. (GPS - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Mar 7, after the closing bell.
The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at 20 cents per share, suggesting 126.7% growth from the year-ago quarter’s actual. The consensus estimate for the fiscal quarter’s earnings has moved up by a penny in the past seven days. For revenues, the consensus mark is pegged at $4.21 billion, indicating a 0.7% drop from the year-ago quarter’s reported figure.
In the last reported quarter, Gap’s earnings beat the Zacks Consensus Estimate by 195%. The company delivered an earnings surprise of 137.9%, on average, in the trailing four quarters.
Key Factors to Note
Gap’s fourth-quarter fiscal 2023 performance is expected to have gained from improved margins, driven by lower airfreight and improved promotional activity. Lower advertising expenses and technology investments from cost-saving actions also bode well. The company has been aggressively undertaking cost-management actions, which are expected to have improved its performance in the to-be-reported quarter. We expect an adjusted gross margin expansion of 130 basis points for the fiscal fourth quarter.
The company has been on track with the execution of its Power Plan 2023, which focuses on opening highly profitable Old Navy and Athleta stores while closing the underperforming Gap and Banana Republic stores.
However, the uncertain macro and consumer environments are expected to have taken a toll on Gap’s top-line performance in the to-be-reported quarter. Rising prices of essential commodities are likely to have hurt lower-income consumers' spending on non-essentials like apparel. On its last earnings call, management projected fiscal fourth-quarter total company net sales growth, including the 14th week, to be flat to slightly negative. We expect net sales to decline 0.7% year over year for the fiscal fourth quarter.
What the Zacks Model Unveils
Our proven model predicts a likely earnings beat for Gap this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The Gap, Inc. Price and EPS Surprise
The Gap, Inc. price-eps-surprise | The Gap, Inc. Quote
Gap currently has an Earnings ESP of +54.71% and a Zacks Rank of 1.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies, which, according to our model, have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +1.13% and a Zacks Rank of 1. AEO is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.66 billion, indicating 11.2% growth from that reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for American Eagle’s fiscal fourth-quarter earnings is pegged at 50 cents per share, indicating 35.1% growth from the year-ago quarter's actuals. The consensus mark has been stable in the past 30 days.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2. DKS is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, implying 4.2% growth from that reported in the year-ago quarter.
The consensus estimate for DKS’ fiscal fourth-quarter earnings is pegged at $3.33 per share, indicating year-over-year growth of 13.7%. The consensus mark has moved up 1.2% in the past 30 days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +5.21% and a Zacks Rank of 3. NKE is likely to register top and bottom-line decline in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.3 billion, suggesting a 0.8% drop from the figure reported in the year-ago quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 70 cents per share, suggesting an 11.4% decline from the year-ago quarter. The consensus mark has moved down a couple of cents in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.