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NEW YORK (TheStreet) -- Shares of Gap (GPS) were gaining 4.1% to $42.01 after-hours Thursday after the apparel retailer beat analysts' estimates for earnings in the fourth quarter, announced a new share repurchase plan, and increased its annual dividend.

Gap reported earnings of 75 cents a share for the fourth quarter, beating analysts' estimates of 74 cents a share for the quarter. Revenue grew 2.8% year over year to $4.71 billion for the quarter, in line with analysts' estimates.

The retailer said it expects to report earnings of $2.75 a share to $2.80 a share for fiscal year 2015, below analysts' estimates of $3.01 a share for the full year.

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Gap also announced that its board of directors approved a new $1 billion share repurchase program and plans to increase its annual dividend. The company intends to increase its annual dividend to 92 cents a share for fiscal 2015, up from its current annual dividend of 88 cents a share.

The company's declared a first quarter dividend of 23 cents a share that's payable on or after April 29 to all shareholders of record as of the close of business on April 8.

TheStreet Ratings team rates GAP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate GAP INC (GPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

GPS data by YCharts

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