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What's in the Cards for Hanesbrands' (HBI) Q1 Earnings?

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Hanesbrands Inc. (HBI - Free Report) is likely to witness growth in the top line when it reports first-quarter 2022 earnings on May 5. The Zacks Consensus Estimate for revenues is pegged at $1,541 million, suggesting an increase of 2.2% from the prior-year quarter’s reported figure.

Hanesbrands’ bottom line is likely to decline year over year in the first quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 28 cents per share, suggesting a 28.2% slump from the prior-year quarter’s reported figure. The designer, manufacturer and seller of apparel has a trailing four-quarter earnings surprise of 21.4%, on average. Hanesbrands delivered an earnings surprise of 2.3% in the last reported quarter.

Hanesbrands Inc. Price, Consensus and EPS Surprise

 

Hanesbrands Inc. Price, Consensus and EPS Surprise

Hanesbrands Inc. price-consensus-eps-surprise-chart | Hanesbrands Inc. Quote

 

Things To Note

Hanesbrands is benefiting from its Full Potential plan, which includes growing the global Champion brand, re-igniting innerwear growth, driving consumer-centricity and focusing on the portfolio. Strength in the company’s Champion brand has been a key growth driver. Such upsides bode well for the quarter under review. For first-quarter 2022, net sales from continuing operations are anticipated in the range of $1.51-$1.57 billion. The midpoint of the guidance suggests year-over-year net sales growth of 2%.

In its last earnings call, management highlighted that it expects to keep witnessing gross and operating margin pressure through the first half of the year. The downside can be attributed to the timing of inflation and planned investments related to the Full Potential plan. Hanesbrands’ strategic decision to increase spending on expediting products to support innovation launches and retail space gains is a downside. Management expects the first-quarter gross margin to decline at the same rate witnessed in the fourth quarter. The company projects a first-quarter operating margin decline of roughly 420 basis points at the midpoint of the guidance. Adjusted earnings per share (EPS) from continuing operations are envisioned around the 24-31 cents range for the first quarter.

Apart from this, owing to its international presence, Hanesbrands is exposed to unfavorable currency fluctuations. Net sales from continuing operations are likely to have had an adverse impact of about $35 million from currency movements in the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Gildan Activewear (GIL - Free Report) has an Earnings ESP of +10.20% and a Zacks Rank #3, currently. GIL is likely to register an increase in the bottom line when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny to 49 cents per share in the past 30 days, indicating a rise of 2.1% from the year-ago quarter’s tally. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gildan Activewear’s top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $656.7 million, which suggests an increase of 11.4% from the figure reported in the prior-year quarter. GIL delivered an earnings beat of 66.6%, on average, in the trailing four quarters.

Marriott International (MAR - Free Report) has an Earnings ESP of +3.84% and a Zacks Rank #3, currently. MAR is likely to register an increase in the bottom line when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has declined by a penny to 94 cents per share in the past 30 days, indicating an improvement from 10 cents a share registered in the year-ago quarter.

Marriott International’s top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,172 million, which indicates a surge of 80% from the figure reported in the prior-year quarter. MAR delivered an earnings beat of 86.6%, on average, in the trailing four quarters.

Sony (SONY - Free Report) has a Zacks Rank #3 and an Earnings ESP of +12.96%. SONY is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has declined by a couple of cents to 82 cents per share in the past 30 days, indicating a 1.2% growth from the year-ago quarter’s reported figure.

Sony’s top line is expected to decline from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $20,819 million, suggesting a drop of 0.7% from the figure reported in the prior-year quarter. SONY delivered an earnings beat of 51.4%, on average, in the trailing four quarters.

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