5 Stocks That Delivered Upbeat Financial Results

4. The Gap, Inc. (NYSE: GPS)

Number of Hedge Fund Holders: 43

The Gap, Inc. (NYSE: GPS) traces its roots back to 1969 when Donald and Doris Fisher open their first Gap store in San Francisco to sell Levi’s jeans. It gained popularity in a short span of time and its store count crossed two hundred by 1976. Gap continued its expansion over the years and evolved into America’s biggest apparel retailer.

The San Francisco, California-based company recently caught investors’ attention after posting better-than-expected results for the second quarter. The Gap, Inc. (NYSE: GPS) reported adjusted earnings of 70 cents per share, beating the consensus forecast of 46 cents per share.

Revenue for the quarter jumped 29 percent on a year-over-year basis to $4.2 billion. Analysts, on average, were expecting The Gap, Inc. (NYSE: GPS) to post revenue of $4.1 billion.

CEO Sonia Syngal expressed her satisfaction with the results. Syngal said in a statement:

“Our talented teams delivered our highest second quarter net sales in over a decade. Our strategy is driving growth as evidenced by continued strength at Old Navy and Athleta, Gap Brand’s second consecutive quarter of positive 2-year comparable sales in North America, and momentum gaining at Banana Republic. Stepped-up marketing investments, improved brand management, and technology enhancements are paying off as our brand power cuts through.”

The Gap, Inc. (NYSE: GPS) also raised its full-year adjusted earnings outlook to a range of $2.10 per share to $2.25 per share. Moreover, it is anticipating sales growth of around 30 percent for fiscal 2021.