FBR Capital Reiterates Market Perform on Gap, Inc. (GPS) Following 2Q Beat
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
FBR Capital reiterated a Market Perform rating and $22.00 price target on Gap, Inc. (NYSE: GPS) following the company's 2Q earnings report. The company reported EPS of $0.60, ahead of the consensus estimates $0.58, slightly above the $0.58–$0.59 EPS guidance. Management guided 2016 EPS to $1.87–$1.92, in line with what management had indicated as achievable, last call.
Analyst Susan Anderson commented, "GPS reported 2Q16 EPS of $0.60 (versus FBR/consensus of $0.58), slightly above the $0.58–$0.59 EPS guidance provided on August 8 during GPS's July SSS call. It also reported 1Q sales of $3.9B (–1.2% YOY) and comps of –2% on the previous call. The –2% comp for 2Q was primarily driven by traffic (down). Management guided 2016 EPS to $1.87–$1.92, roughly in line with what management had indicated as achievable, last call, if traffic trends improved, and significantly below original guidance of $2.20–$2.25 given on the 4Q15 EPS call. ON showed significant sequential improvement, which we view as a positive. However, we remain on the sidelines until we see sustained improvement at ON or positive comps consistently at Gap, as well as increased international visibility, inflection at BR, an overall return to positive comps, or a more attractive entry point."
Shares of Gap, Inc. closed at $25.88 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
- RBC Capital Raises Price Target on Danaher (DHR) Following 'Clean' 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!