Gap Stock: What Wall Street Expects From Earnings Today

TLDR

• Gap reports earnings Thursday after hours, with analysts expecting EPS of $0.48-$0.49 on revenue of $3.7 billion.
• The stock is down double digits since late-May after weak Old Navy and Athleta results, but jumped 6% to $21.36 on Tuesday.
• Options traders are leaning bullish, with calls outpacing puts (20,328 vs 13,242) and heavy activity at $23-$24 strike prices.
• Goldman Sachs maintains a Buy rating with a price target of $25, while the analyst consensus mean target is $25.58.
• Analyst sentiment is split down the middle, with half bullish and half rating the stock a Hold.

Gap has had a rough few months. The stock fell sharply after its Q1 results in late May, when management flagged slowing sales at Old Navy and weakness at Athleta. Women’s dresses specifically were called out as a miss on merchandise.

The stock is down double digits from those May highs. But heading into Thursday’s report, something shifted. Gap jumped 6.02% to $21.36 on Tuesday, putting the stock near the midpoint of its 52-week range of $18.11 to $29.36.

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