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How Gildan Activewear (GIL) is Placed Ahead of Q3 Earnings

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We expect Gildan Activewear Inc. (GIL - Free Report) to witness both the top and the bottom-line growth when it reports third-quarter 2021 earnings on Nov 4, before market open. The Zacks Consensus Estimate for quarterly earnings is pegged at 56 cents, which suggests a sharp rise from 30 cents earned in the year-earlier quarter. The consensus mark has increased a couple of cents in the past 30 days.

The Zacks Consensus Estimate for third-quarter sales currently stands at $712 million, indicating an 18% increase from the prior-year quarter’s reported figure.

A glance at the company’s performance in the last four quarters reflects that it delivered an earnings surprise of 133.2%, on average.

Key Factors to Note

Gildan Activewear’s quarterly performance might have benefited from improving market trends and recovery from the pandemic-led disruptions. Solid execution of its strategies including elimination of redundancy and complexity from the business, enhancement of business operations and cost-saving measures are likely to have contributed to the company’s performance.

The company’s Back-to-Basics strategy bodes well. It mainly focuses on simplifying business and optimizing operations as well as streamlining administrative, marketing and merchandising activities. It has been gaining from strength in brands for a while. The company is also reinforcing its presence in the international markets. All the aforesaid factors are likely to have boosted Gildan Activewear’s performance in the to-be-reported quarter.

On the flip side, supply-chain bottlenecks remain an industry-wide concern. Also, the company continues to endure tightness in raw material inputs and transportation-related issues, inducing inflationary pressures.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Gildan Activewear 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.

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. price-eps-surprise | Gildan Activewear, Inc. Quote

Gildan Activewear currently has a Zacks Rank #2 and an Earnings ESP of +7.14%.

More Stocks With Favorable Combination

Here are a few other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this season:

PVH Corp. (PVH - Free Report) has an Earnings ESP of +4.84% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hanesbrands (HBI - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank of 2 at present.

Five Below (FIVE - Free Report) has an Earnings ESP of +3.90% and a Zacks Rank #3, presently.

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