What to Expect When The Gap (GPS) Reports Third Quarter Earnings Results Today

NEW YORK (TheStreet) -- The Gap Inc. (GPS) is scheduled to report its 2014 third quarter earnings results after the market close this afternoon. Analysts are expecting the clothing and accessories retailer to post a year-over-year increase in earnings per share.

For the latest quarter analysts' have forecast for earnings of 79 cents per share. This compares to the earnings of 72 cents per share The Gap reported for the 2013 third quarter.

Earlier this month, Gap reported its third quarter sales results, which were $3.97 billion for the most recent quarter. Analysts polled by Thomson Reuters expected $4.05 billion in revenue for the quarter.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Shares of The Gap are higher by 1.32% to $40.06 in mid-morning trading on Thursday.

Separately, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GPS's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market, GAP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $303.00 million to $332.00 million.
  • You can view the full analysis from the report here: GPS Ratings Report

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