We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for revenues is pegged at $1,454 million, suggesting a decline of almost 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at a loss of 2 cents per share over the past 30 days. The projection indicates a deterioration from earnings of 28 cents reported in the year-ago period quarter. The basic apparel company has a trailing four-quarter negative earnings surprise of 6.9%, on average.
Hanesbrands Inc. Price, Consensus and EPS Surprise
Hanesbrands remains troubled by the overall inflationary environment, which is weighing on consumers’ pockets and leading to sluggish demand. These headwinds hurt the company’s sales in the first quarter and are likely to have persisted in the second quarter. Second-quarter 2023 profit is likely to have been hurt by these obstacles, as well as currency headwinds and elevated interest expenses.
Moreover, management expects gross and operating margin pressure to have continued in the first half of 2023 as it sells through the remainder of its higher-cost inventory. The gross profit margin in the second quarter of 2023 is expected to have contracted around 400 bps year over year, implying headwinds from freight and commodity inflation. Our model estimate suggests an adjusted gross margin of 35.1% for the second quarter, indicating a decline from 37.8% reported in the year-ago period.
For the second quarter of 2023, net sales from continuing operations are expected in the range of $1.42-$1.47 billion, including a projected headwind of nearly $20 million from currency rates. At the midpoint, the guidance reflects a nearly 3% decline year over year in net sales on a cc basis and down 5% on a reported basis.
The adjusted operating profit from continuing operations is expected in the range of $70-$90 million, including a projected headwind of nearly $3 million from currency rates. It also expects interest and other expenses to be about $80 million. The adjusted loss per share from continuing operations is envisioned at 5 cents to break even for the second quarter.
However, efforts to bolster brands via robust innovations have been supporting Hanesbrands. The Focus on Full Potential plan has also been working well. The plan includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. For the second quarter, we expect Innerwear, Activewear and International segment sales to decline 5.4%, 1.9% and 5.8%, respectively.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Hanesbrands has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +16.51% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $281.9 million, calling for growth of 83.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 26 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Image: Bigstock
What Must You Know Ahead of Hanesbrands' (HBI) Q2 Earnings?
Hanesbrands Inc. (HBI - Free Report) is likely to register a top-and-bottom-line decline when it reports second-quarter 2023 earnings on Aug 10.
The Zacks Consensus Estimate for revenues is pegged at $1,454 million, suggesting a decline of almost 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at a loss of 2 cents per share over the past 30 days. The projection indicates a deterioration from earnings of 28 cents reported in the year-ago period quarter. The basic apparel company has a trailing four-quarter negative earnings surprise of 6.9%, on average.
Hanesbrands Inc. Price, Consensus and EPS Surprise
Hanesbrands Inc. price-consensus-eps-surprise-chart | Hanesbrands Inc. Quote
Factors to Consider
Hanesbrands remains troubled by the overall inflationary environment, which is weighing on consumers’ pockets and leading to sluggish demand. These headwinds hurt the company’s sales in the first quarter and are likely to have persisted in the second quarter. Second-quarter 2023 profit is likely to have been hurt by these obstacles, as well as currency headwinds and elevated interest expenses.
Moreover, management expects gross and operating margin pressure to have continued in the first half of 2023 as it sells through the remainder of its higher-cost inventory. The gross profit margin in the second quarter of 2023 is expected to have contracted around 400 bps year over year, implying headwinds from freight and commodity inflation. Our model estimate suggests an adjusted gross margin of 35.1% for the second quarter, indicating a decline from 37.8% reported in the year-ago period.
For the second quarter of 2023, net sales from continuing operations are expected in the range of $1.42-$1.47 billion, including a projected headwind of nearly $20 million from currency rates. At the midpoint, the guidance reflects a nearly 3% decline year over year in net sales on a cc basis and down 5% on a reported basis.
The adjusted operating profit from continuing operations is expected in the range of $70-$90 million, including a projected headwind of nearly $3 million from currency rates. It also expects interest and other expenses to be about $80 million. The adjusted loss per share from continuing operations is envisioned at 5 cents to break even for the second quarter.
However, efforts to bolster brands via robust innovations have been supporting Hanesbrands. The Focus on Full Potential plan has also been working well. The plan includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. For the second quarter, we expect Innerwear, Activewear and International segment sales to decline 5.4%, 1.9% and 5.8%, respectively.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Hanesbrands has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +16.51% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $281.9 million, calling for growth of 83.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 26 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.