S&P 500 (NYSE:SPY) component The Gap Inc. (NYSE:GPS) reported its results for the fourth quarter. The Gap is an international specialty retailer that sells casual apparel, accessories and personal care products for men, women, and children.

Investing Insights: Warren Buffett Trashes Gold, But What About Silver?

The Gap Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the apparel store fell to $218 million (44 cents per share) vs. $365 million (60 cents per share) a year earlier. This is a decline of 40.3% from the year-earlier quarter.

Revenue: Fell 1.9% to $4.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Gap Inc. beat the mean analyst estimate of 42 cents per share. Analysts were expecting revenue of $4.28 billion.

Quoting Management: “In spite of 2011 earnings being below last year, we’re pleased with the progress we made against our long-term strategic plan, including growing our online business and expanding internationally,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “There’s no doubt that improving our performance, especially in our base businesses, is the top priority in 2012, and we’re confident this is the right time to invest wisely to win back customers.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the third quarter, net income fell 36.3% while the figure fell 19.2% in the second quarter and 22.8% in the first quarter.

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 5.4 percentage points from the year-earlier quarter to 32.8%. Over that time, margins have contracted on average 3.3 percentage points per quarter on a year-over-year basis.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the third quarter, by one cent in the second quarter, and by one cent in the first quarter.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 1.9% to $3.58 billion from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 37 cents per share to 35 cents. For the fiscal year, the average estimate has moved up from $1.48 a share to $1.54 over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Are Customers Satisfied With These Online Companies?>>

Will Higher Gas Prices Derail the Recovery?>>

Do Central Banks Care More About the Dow or Gold?>>

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

Get Your FREE Special Report: 4 Things You Must Know About the US Economy Now!