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Hanesbrands (HBI) to Report Q1 Earnings: Key Factors to Note
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Hanesbrands Inc. (HBI - Free Report) is set to report first-quarter 2024 earnings on Mar 9. The consensus mark is pegged at a loss of 6 cents per share, unchanged in the past 30 days. It incurred a loss of 6 cents in the prior-year quarter.
The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, suggesting a decrease of 15.6% from the year-ago quarter’s reported figure.
HBI has a trailing four-quarter negative earnings surprise of 6.4%, on average. In the last reported quarter, the company posted a negative earnings surprise of 66.7%.
Hanesbrands has been witnessing unanticipated challenges in sales environment which is likely to have hurt its overall profitability and performance. It is facing some significant hurdles, particularly in the U.S. Activewear market and in Australia. Indeed, the above reasons were the causes for a sales decline in the fourth quarter of 2023.
On the last reported quarter’s earnings call, management anticipated continued difficulties in sales environment and in specific product categories, especially in the initial quarters of 2024. Considering the continuity in this challenging environment, net sales from continuing operations are expected in the range of $1.13-$1.19 billion, including a projected headwind of nearly $13 million from currency rates.
The mid-point of the above guidance suggests a nearly 16% decline from the year-earlier levels on a reported basis and a 14% plunge on an organic basis at constant currency. Quarterly adjusted loss from continuing operations is envisioned in the band of 4-10 cents per share.
Despite the top-line pressure, HBI has been on track with the execution of its initiatives to simplify the business and reduce cost. Hanesbrands' reignite innerwear strategy is expected to have boded well. It envisions improving gross margin by optimizing input costs and implementing cost-saving measures within the supply chain. Gains from these actions are likely to get reflected in the company’s results for the to-be-reported quarter.
Additionally, HBI has been poised for sustained profitability through its focus on champion performance enhancement plan and full potential plan to strength the brand. It has been witnessing benefits from product innovation and expansion in the retail space. It also highlighted the launch of cross-category and cross-geography products.
What the Zacks Model Unveils
Our proven model does not 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. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Hanesbrands currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some stocks that investors may consider, as our model suggests that these have the right combination of elements to post earnings beat this season.
Adidas (ADDYY - Free Report) currently has an Earnings ESP of +19.48% and carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 57 cents, suggests growth of 370% from the year-earlier quarter . You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for revenues is pegged at $5.81 million, indicating a rise of 6.3% from the prior-year quarter. ADDYY has a trailing four-quarter negative earnings surprise of 59.9%, on average.
PVH Corp. (PVH - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. The Zacks Consensus Estimate for EPS of $2.14 suggests no change from the year-earlier actuals.
The consensus mark for revenues is pegged at $1.9 billion, indicating a decline of 10.7% from the figure reported in the year-ago quarter. PVH has an average earnings surprise of 9.16% in the trailing four quarters.
Fox Corporation (FOXA - Free Report) currently has an Earnings ESP of +8.73% and a Zacks Rank #3. The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, suggesting a decline of 15.8% from the figure reported in the prior-year quarter.
The consensus mark for EPS of $1.16 indicates a jump of 23.4% from the year-earlier levels. FOXA has an average earnings surprise of 71.0% in the trailing four quarters.
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Hanesbrands (HBI) to Report Q1 Earnings: Key Factors to Note
Hanesbrands Inc. (HBI - Free Report) is set to report first-quarter 2024 earnings on Mar 9. The consensus mark is pegged at a loss of 6 cents per share, unchanged in the past 30 days. It incurred a loss of 6 cents in the prior-year quarter.
The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, suggesting a decrease of 15.6% from the year-ago quarter’s reported figure.
HBI has a trailing four-quarter negative earnings surprise of 6.4%, on average. In the last reported quarter, the company posted a negative earnings surprise of 66.7%.
Hanesbrands Inc. Price and EPS Surprise
Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote
Factors to Consider
Hanesbrands has been witnessing unanticipated challenges in sales environment which is likely to have hurt its overall profitability and performance. It is facing some significant hurdles, particularly in the U.S. Activewear market and in Australia. Indeed, the above reasons were the causes for a sales decline in the fourth quarter of 2023.
On the last reported quarter’s earnings call, management anticipated continued difficulties in sales environment and in specific product categories, especially in the initial quarters of 2024. Considering the continuity in this challenging environment, net sales from continuing operations are expected in the range of $1.13-$1.19 billion, including a projected headwind of nearly $13 million from currency rates.
The mid-point of the above guidance suggests a nearly 16% decline from the year-earlier levels on a reported basis and a 14% plunge on an organic basis at constant currency. Quarterly adjusted loss from continuing operations is envisioned in the band of 4-10 cents per share.
Despite the top-line pressure, HBI has been on track with the execution of its initiatives to simplify the business and reduce cost. Hanesbrands' reignite innerwear strategy is expected to have boded well. It envisions improving gross margin by optimizing input costs and implementing cost-saving measures within the supply chain. Gains from these actions are likely to get reflected in the company’s results for the to-be-reported quarter.
Additionally, HBI has been poised for sustained profitability through its focus on champion performance enhancement plan and full potential plan to strength the brand. It has been witnessing benefits from product innovation and expansion in the retail space. It also highlighted the launch of cross-category and cross-geography products.
What the Zacks Model Unveils
Our proven model does not 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. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Hanesbrands currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some stocks that investors may consider, as our model suggests that these have the right combination of elements to post earnings beat this season.
Adidas (ADDYY - Free Report) currently has an Earnings ESP of +19.48% and carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 57 cents, suggests growth of 370% from the year-earlier quarter . You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for revenues is pegged at $5.81 million, indicating a rise of 6.3% from the prior-year quarter. ADDYY has a trailing four-quarter negative earnings surprise of 59.9%, on average.
PVH Corp. (PVH - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. The Zacks Consensus Estimate for EPS of $2.14 suggests no change from the year-earlier actuals.
The consensus mark for revenues is pegged at $1.9 billion, indicating a decline of 10.7% from the figure reported in the year-ago quarter. PVH has an average earnings surprise of 9.16% in the trailing four quarters.
Fox Corporation (FOXA - Free Report) currently has an Earnings ESP of +8.73% and a Zacks Rank #3. The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, suggesting a decline of 15.8% from the figure reported in the prior-year quarter.
The consensus mark for EPS of $1.16 indicates a jump of 23.4% from the year-earlier levels. FOXA has an average earnings surprise of 71.0% in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.