Gap Q3 Profit Up, Board Authorizes $1 Bln Share Purchase - Quick Facts

(RTTNews) - The Gap, Inc. (GPS) Thursday reported third-quarter profit of $337 million or $0.72 per share, up from $308 million or $0.63 per share in the same period last year.

On average, 32 analysts polled by Thomson Reuters expected the company to earn $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Sales improved 3 percent to $3.98 billion compared with $3.86 billion last year. Analysts expected revenues of $3.98 billion.

Comparable sales for the quarter improved 1 percent, compared to a 6 Percent Increase last year.

Looking ahead, the company has reaffirmed its full-year 2014 earnings guidance range of $2.57 to $2.65 per share. Analysts currently expect full-year earnings of $2.74 per share.

Additionally, the Board of Directors of Gap have approved a new $1 billion share repurchase authorization for the company's common stock, reinforcing the company's commitment to returning excess cash to shareholders.

The new repurchase authorization follows the company's recent announcement to increase its annual dividend per share by one-third, from $0.60 to $0.80 per share.

The company previously repurchased approximately 20 million shares for about $790 million during the third quarter of fiscal year 2013, completing all but $100 million of its existing share repurchase authorization.