The Gap Inc.
), a global specialty retailer, is slated to post its
fourth-quarter fiscal 2013 earnings results on Feb 27, 2014. In
the previous quarter, it reported a positive earnings surprise of
1.4%. Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
The company's third-quarter fiscal 2013 results witnessed
robust top- and bottom-line growth. Comparable store sales also
improved, mainly benefiting from the consistent sales growth in
the Gap Global brand. The company's continued focus on turnaround
strategies for improving the top line has been successful, given
the solid comps and sales performances in the trailing 5
quarters. Further, Gap's online segment performed well and
operating income also increased, owing to the company's
cost-cutting initiatives. Gap also returned excess cash to
shareholders in the form of dividends and repurchases in the
Our proven model does not conclusively show that Gap is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is
not the case here as you will see below.
: Gap currently has an Earnings ESP (Expected Surprise
Prediction) of 0.00%. This is because both the Most Accurate
estimate and the Zacks Consensus Estimate are pegged at 66
: Gap's Zacks Rank #3 (Hold
when combined with a 0.00% ESP makes surprise prediction
difficult. We caution against stocks with a Zacks Rank #4 and #5
(Sell rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Natus Medical Inc. (
Earnings ESP of +8.7% and a Zacks Rank #1 (Strong Buy).
Susser Holdings Corporation
), Earnings ESP of +2.38% and a Zacks Rank #2 (Buy).
AUTOZONE INC (AZO): Free Stock Analysis
NATUS MEDICAL (BABY): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
SUSSER HLDGS CP (SUSS): Free Stock Analysis
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), Earnings ESP of +1.99% and a Zacks Rank #2 (Buy).