American clothing and accessory retailer Gap Inc. (GAP) is preparing to release its earnings report for the third quarter of 2024 after the markets close on Thursday. Wall Street expects earnings per share of 58 cents for the quarter. Based on the latest TipRanks Forecast data, analysts also estimate Q3 revenue to be $3.81 billion.
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Will Gap Beat Wall Street’s Estimates?
There’s potential for Gap to report EPS above Wall Street’s estimates as it has done so in seven of its eight most recent quarters. Its chances of beating analysts’ revenue estimates aren’t quite as strong, with it only coming in above expectations in five of the last eight quarters.
According to TipRanks’ Bulls Say, Bears Say tool, GAP could face significant troubles in Q3. That includes unusually warm weather during the period, which means fewer customers buying winter gear. This could affect sales as the subsidiary Old Navy is highly sensitive to seasonal shopping.
Another issue bears have with Gap is its Q3 revenue outlook. The company only expects a slight increase in sales, as compared to last quarter’s 4.8% growth. This could signal that slowing trends in the sector are catching up to the clothing retailer.
Analysts Weigh In On GAP Stock
JPMorgan (JPM) analyst Matthew Boss lacks confidence in GAP stock. As a result, the analyst dropped his price target to $26 from $28 and reiterated a Neutral rating for the shares.
Turning to Wall Street, the consensus rating for GAP is Moderate Buy based on seven Buy and five Hold ratings over the last three months. This comes with an average price target of $28.90, a high of $32, and a low of $25, representing a potential upside of 35.30%.
