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What's in the Offing for Hanesbrands' (HBI) Q3 Earnings?
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Hanesbrands Inc. (HBI - Free Report) is likely to register a decline in the top and bottom lines when it reports third-quarter 2020 numbers on Nov 5, before the opening bell. The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at 36 cents per share, which suggests a decline of 33.3% from the year-ago period’s reported figure. Notably, Hanesbrands’ bottom line outperformed the Zacks Consensus Estimate by a significant margin in the last reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,604 million, indicating a decline of 14.1% from the prior-year quarter’s reported figure.
Hanesbrands has been battling soft sales in the Activewear segment for quite some time now. The segment, of late, has been bearing the brunt of adverse effects of the coronavirus pandemic, which has resulted in a fall in demand for the company’s printwear and sports apparel businesses. Nonetheless, Hanesbrands has undertaken a number of measures to stay afloat amid the coronavirus crisis. The company has developed a product line of personal protective garments, which resonates well with the present environment, and commercial and consumer demand. In its last earnings call, management said that it expects selling more than $150 million of protective garments in the second half of the year, mostly in the third quarter.
Also, the company has been benefiting from its strong online business, especially amid the pandemic-led social distancing. However, foreign currency headwinds have been a concern for Hanesbrands. Management expects adverse currency impacts on net sales and operating profit in 2020, which raises concerns about the quarter under review. Apart from this, the company expects a decline in gross margin in the third quarter. Nevertheless, focus on the Project Booster program bodes well.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hanesbrands currently has a Zacks Rank #1 and an Earnings ESP of +9.80%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
lululemon Athletica (LULU - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank #3.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +161.64% and a Zacks Rank #3.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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What's in the Offing for Hanesbrands' (HBI) Q3 Earnings?
Hanesbrands Inc. (HBI - Free Report) is likely to register a decline in the top and bottom lines when it reports third-quarter 2020 numbers on Nov 5, before the opening bell. The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at 36 cents per share, which suggests a decline of 33.3% from the year-ago period’s reported figure. Notably, Hanesbrands’ bottom line outperformed the Zacks Consensus Estimate by a significant margin in the last reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,604 million, indicating a decline of 14.1% from the prior-year quarter’s reported figure.
Hanesbrands Inc. Price and EPS Surprise
Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote
Key Factors to Note
Hanesbrands has been battling soft sales in the Activewear segment for quite some time now. The segment, of late, has been bearing the brunt of adverse effects of the coronavirus pandemic, which has resulted in a fall in demand for the company’s printwear and sports apparel businesses. Nonetheless, Hanesbrands has undertaken a number of measures to stay afloat amid the coronavirus crisis. The company has developed a product line of personal protective garments, which resonates well with the present environment, and commercial and consumer demand. In its last earnings call, management said that it expects selling more than $150 million of protective garments in the second half of the year, mostly in the third quarter.
Also, the company has been benefiting from its strong online business, especially amid the pandemic-led social distancing. However, foreign currency headwinds have been a concern for Hanesbrands. Management expects adverse currency impacts on net sales and operating profit in 2020, which raises concerns about the quarter under review. Apart from this, the company expects a decline in gross margin in the third quarter. Nevertheless, focus on the Project Booster program bodes well.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hanesbrands currently has a Zacks Rank #1 and an Earnings ESP of +9.80%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
Central Garden & Pet (CENT - Free Report) has an Earnings ESP of +57.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon Athletica (LULU - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank #3.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +161.64% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>