Nomura Securities Maintains a 'Neutral' on Gap, Inc. (GPS); Adjusting Estimates After Q4 Report
Tweet
Share
E-mailGet Alerts GPS Hot Sheet
Price: $24.55 --0%
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Nomura Securities maintains a 'Neutral' on Gap, Inc. (NYSE: GPS) price target of $18.00.
Analyst, Paul Lejuez, said, "GPS reported 4Q EPS of $0.44 vs our est and cons of $0.42 and guidance of $0.41-$0.42. Mgmt took a more cautious tone on the earnings call than we expected, providing guidance below our estimates (hurt by a big slowdown in share repo). Mgmt did not sound confident that avg unit cost (AUC) would be down significantly in 2H, as it may invest in more quality fabrics (although this is likely conservatism to some degree after getting burned on AUC in F11). We model 2H12 AUC down 10%. While mgmt has controlled expenses very well for several years, it now expects SG&A deleverage and has fewer levers to pull in F12 if sales slow further. We are lowering our F12E from $1.93 to $1.83, as the lower repo in 4Q reduced our F12E by $0.10. We are introducing our F13E EPS of $2.00."
For an analyst ratings summary and ratings history on Gap, Inc. click here. For more ratings news on Gap, Inc. click here.
Shares of Gap, Inc. closed at $23.52 yesterday.
Analyst, Paul Lejuez, said, "GPS reported 4Q EPS of $0.44 vs our est and cons of $0.42 and guidance of $0.41-$0.42. Mgmt took a more cautious tone on the earnings call than we expected, providing guidance below our estimates (hurt by a big slowdown in share repo). Mgmt did not sound confident that avg unit cost (AUC) would be down significantly in 2H, as it may invest in more quality fabrics (although this is likely conservatism to some degree after getting burned on AUC in F11). We model 2H12 AUC down 10%. While mgmt has controlled expenses very well for several years, it now expects SG&A deleverage and has fewer levers to pull in F12 if sales slow further. We are lowering our F12E from $1.93 to $1.83, as the lower repo in 4Q reduced our F12E by $0.10. We are introducing our F13E EPS of $2.00."
For an analyst ratings summary and ratings history on Gap, Inc. click here. For more ratings news on Gap, Inc. click here.
Shares of Gap, Inc. closed at $23.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
- Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
- Optimum Communications gets NYSE non-compliance notice over stock price
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS ViewRelated Entities
Nomura, EarningsSign 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!
