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Bull of the Day: Gap Inc. (GPS) - Bull of the Day
Gap Inc.'s ( GPS ) third-quarter 2012 earnings of $0.63 per share came in line with the Zacks Consensus Estimate, and surged 66% from the year-ago quarter on the back of increased sales along with improved margins and a lower share count. During the quarter, Gap's net sales increased 8.0% year over year to $3,864 million.
The solid quarterly performance prompted management to raise its fiscal 2012 earnings guidance range to $2.20-$2.25 per share from $1.95-$2.00 forecasted earlier. We believe that Gap's determined endeavors to keep itself on the growth trajectory have paid off amid a sluggish economic environment.
Moreover, the company is undertaking an international expansion strategy. The company, to counter the domestic market saturation, is aiming total sales of approximately 30% from its overseas operations and online business by 2013. Currently, we are maintaining our long-term Outperform recommendation on the stock.
GAP INC (GPS): Free Stock Analysis Report
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