Hanesbrands Inc. (HBI - Free Report) is set to report fourth-quarter 2016 results on Feb 2, after the closing bell. Last quarter, the company posted in-line results. In the trailing four quarters, the company has reported in-line results in one, while two negative surprises and one positive surprise in rest of the quarters, with an average beat of 2.98%.
Let's see how things are shaping up prior to this this announcement.
Factors to Consider
We observe that Hanesbrands is consistent with its innovations that help it to maintain market share as well as a loyal customer base. Further, the company is focusing more on its core products and continues to balance the same with the right proportion of promotion, media and innovation. Hanesbrands' latest innovation – the Fresh IQ odor technology used in both Innerwear as well as Outerwear segments has been received well by customers. The products are expected to contribute to results in the fourth quarter.
However, it is currently plagued with currency headwinds, soft sales in the Activewear and direct-to-consumer segments, and a lackluster performance of the Champion brand. Notably, the company has also lowered its 2016 guidance as it anticipates soft results in the upcoming fourth quarter.
Cold weather in metropolitan areas and snow sports regions are prerequisites for a good start to the outerwear season prior to Black Friday. However, an unseasonably warm October and late arrival of winter has prevented the company from gaining the benefit of early orders. Consequently, soft sales are anticipated to hinder the fourth-quarter results.
In the past one year, the shares of this retailer have declined 24%, underperforming the Zacks categorized Textile- Apparel Manufacturing industry which has declined only 16%.
Earnings Whispers
Our proven model does not conclusively show that Hanesbrands is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents.
Zacks Rank: Hanesbrands carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the broader consumer discretionary space that have the right combination of elements to post an earnings beat this quarter:
Lululemon Athletics Inc. (LULU - Free Report) , with an earnings ESP of +0.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corporation (PVH - Free Report) , with an earnings ESP of +4.07% and a Zacks Rank #2.
Time Warner Inc. , with an earnings ESP of +2.52% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
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Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Hanesbrands Inc. (HBI - Free Report) is set to report fourth-quarter 2016 results on Feb 2, after the closing bell. Last quarter, the company posted in-line results. In the trailing four quarters, the company has reported in-line results in one, while two negative surprises and one positive surprise in rest of the quarters, with an average beat of 2.98%.
Let's see how things are shaping up prior to this this announcement.
Factors to Consider
We observe that Hanesbrands is consistent with its innovations that help it to maintain market share as well as a loyal customer base. Further, the company is focusing more on its core products and continues to balance the same with the right proportion of promotion, media and innovation. Hanesbrands' latest innovation – the Fresh IQ odor technology used in both Innerwear as well as Outerwear segments has been received well by customers. The products are expected to contribute to results in the fourth quarter.
However, it is currently plagued with currency headwinds, soft sales in the Activewear and direct-to-consumer segments, and a lackluster performance of the Champion brand. Notably, the company has also lowered its 2016 guidance as it anticipates soft results in the upcoming fourth quarter.
Cold weather in metropolitan areas and snow sports regions are prerequisites for a good start to the outerwear season prior to Black Friday. However, an unseasonably warm October and late arrival of winter has prevented the company from gaining the benefit of early orders. Consequently, soft sales are anticipated to hinder the fourth-quarter results.
In the past one year, the shares of this retailer have declined 24%, underperforming the Zacks categorized Textile- Apparel Manufacturing industry which has declined only 16%.
Earnings Whispers
Our proven model does not conclusively show that Hanesbrands is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 57 cents.
Zacks Rank: Hanesbrands carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the broader consumer discretionary space that have the right combination of elements to post an earnings beat this quarter:
Lululemon Athletics Inc. (LULU - Free Report) , with an earnings ESP of +0.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corporation (PVH - Free Report) , with an earnings ESP of +4.07% and a Zacks Rank #2.
Time Warner Inc. , with an earnings ESP of +2.52% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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