Gap (GPS) Stock Fluctuates in After-Hours on Q2 Beat, Downbeat Outlook - TheStreet

NEW YORK (TheStreet) -- Shares of Gap (GPS) - Get Report were fluctuating in after-hours trading on Thursday after the company posted better-than-expected results for the 2016 second quarter, but gave light guidance for the full year.

After today's closing bell, the San Francisco-based retailer said it sees 2016 adjusted earnings per share between $1.87 and $1.92. Analysts are looking for earnings of $1.96 per share for the full year.

For the second quarter, Gap posted adjusted earnings of 60 cents per share, topping analysts' estimates by a penny. Revenue was $3.85 billion, above Wall Street's expectations of $3.79 billion.

Comparable-store sales fell 2% during the period.

Gap comparable-store sales declined 3%, Banana Republic same-store sales dropped 9% and Old Navy comps were flat.

"While I remain unsatisfied with the pace of improvement across the business, I am encouraged by the underlying signs of progress in Q2, as demonstrated by healthier merchandise margins," CEO Art Peck said in a statement.

About 8.57 million of the company's shares changed hands today vs. its average volume of 6.69 million shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins.

But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GPS

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