=Gap (GPS) reported earnings on Thur 1 March 2018 (a/h)

Gap beats by $0.02, beats on revs; comps +5%; guides FY19 EPS above consensus; increases quarterly dividend to $0.2425/share from $0.23/share.

• Reports Q4 (Jan) earnings of $0.61 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.59; revenues rose 7.9% year/year to $4.78 bln vs the $4.68 bln Capital IQ Consensus.
• Comps:
  • Old Navy Global: positive 9 percent versus positive 5 percent last year 
  • Gap Global: flat versus flat last year 
  • Banana Republic Global: positive 1 percent versus negative 3 percent last year
• Increases quarterly dividend to $0.2425/share from $0.23/share.
• Co issues upside guidance for FY19, sees EPS of $2.55-2.70 vs. $2.34 Capital IQ Consensus Estimate.
  • Comparable sales are expected to be flat to up slightly.
• "We are positioning the company for long term growth," said Teri List-Stoll, executive vice president and chief financial officer, Gap Inc. "In addition to leveraging productivity initiatives to fund investments in the business, recent tax reform changes provide a meaningful increase in future earnings."