The Gap Earnings Preview

Background:
The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. The company designs virtually all of its products, which in turn are manufactured by independent sources, and sells them under its brand names.The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. The company designs virtually all of its products, which in turn are manufactured by independent sources, and sells them under its brand names. The company was founded in 1969 and is headquartered in San Francisco, California. The Gap Inc. trades an average of 8 million shares per day with a marketcap of $16.8 Billion.

52 Week Range: $15.08 to 34.92

 Book Value: $6.14

Price To Book: 6.14

Investors are looking forward to improving earnings after the market closes on August 16, 2012 The consensus opinion is presently 48 cents a share, a progression of 13 cents (27.1%) from 35 cents during the corresponding period last year.

The trailing twelve month price-to-earnings ratio is 21.0, the mean fiscal year estimate price-to-earnings ratio is 17.3, based on earnings of $2.01 per share this year.

This stock currently has an annualized dividend of 50 cents, yielding 1.44%. Examining the history of a company is a great way to help understand what to expect moving forward. In the last three years, the average dividend paid per year was $0.40 per share. Over the last five years, the dividend has grown by an average of 7.2% per year.

In the last month, the stock has really moved higher with a 24.3% increase.

The last date GPS released earnings was May 17, 2012, and the closing price was $26.31. Based on a recent price of $34.21, shares are up 30%.

With short interest above 5%, investors will want to monitor changes to know if short sellers turn up the warning signals. Otherwise, the current 5.2% of the float short is relatively small and not a major concern.