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Hanesbrands' (HBI) Q2 Earnings Coming Up: Factors to Note
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Hanesbrands Inc. (HBI - Free Report) is likely to post year-over-year bottom-line growth when it reports second-quarter 2024 earnings on Aug 8 before market open. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share. The company incurred a loss of 1 cent per share in the prior-year quarter. The consensus mark has remained unchanged in the past 30 days.
The consensus estimate for quarterly revenues is pegged at $1.4 billion, indicating a drop of 6.1% from the year-ago quarter’s reported figure.
HBI has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company posted an earnings surprise of 66.7%.
Factors to Consider
Hanesbrands has been witnessing a challenging macroeconomic consumer landscape, which is likely to have hurt sales. The sluggish U.S. Activewear business has been a concern. The macroeconomic headwinds have been hurting demand across regions such as Europe and Australia. We expect revenues for the Activewear and International businesses to be $245.3 million and $390.2 million, respectively, indicating a year-over-year decline of 8.3% and 4.3%.
On the last reported quarter’s earnings call, management cited a tough macro consumer backdrop for its categories in 2024. For the second quarter, Hanesbrands had projected net sales from continuing operations to be in the range of $1.335-$1.375 billion. The midpoint of the guidance indicates a nearly 6% year-over-year decline on a reported basis and an approximately 3% decline on an organic basis at constant currency.
On the flip side, HBI has been on track with the execution of its initiatives to simplify the business and reduce costs. Hanesbrands' reignite innerwear strategy has been working well. HBI has been seeing benefits from product innovation and expansion in the retail space. It has been making strategic actions and increasing marketing investments to aid sustainable growth for its Champion brand. Such strengths are likely to have aided margins and profitability.
For the second quarter, management had envisioned operating profit to grow approximately 40% year over year and operating margin to expand 300 basis points to 9% due to gains from lower input costs and cost savings. It had expected earnings per share of 9 cents.
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’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for the quarterly loss per share is pegged at 8 cents against earnings of 2 cents per share in the prior-year quarter.
The consensus mark for revenues is pegged at $1.1 billion, indicating a decrease of 13.5% from the figure reported in the prior-year quarter. UAA has a trailing four-quarter earnings surprise of 77.7%, on average.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.3 billion, which indicates an increase of 4.5% from the prior-year quarter.
The consensus estimate for the quarterly earnings per share of 90 cents indicates a rise of 5.9% from the year-ago quarter. TJX has a trailing four-quarter earnings surprise of 6.2%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3.
LULU is likely to register bottom and top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.43 billion, which indicates 10.2% growth from the prior-year quarter.
The consensus estimate for earnings is pegged at $2.96 per share, which implies a 10.5% increase from the year-ago quarter's actual. LULU has a trailing four-quarter earnings surprise of 7.4%, on average.
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Hanesbrands' (HBI) Q2 Earnings Coming Up: Factors to Note
Hanesbrands Inc. (HBI - Free Report) is likely to post year-over-year bottom-line growth when it reports second-quarter 2024 earnings on Aug 8 before market open. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share. The company incurred a loss of 1 cent per share in the prior-year quarter. The consensus mark has remained unchanged in the past 30 days.
The consensus estimate for quarterly revenues is pegged at $1.4 billion, indicating a drop of 6.1% from the year-ago quarter’s reported figure.
HBI has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company posted an earnings surprise of 66.7%.
Factors to Consider
Hanesbrands has been witnessing a challenging macroeconomic consumer landscape, which is likely to have hurt sales. The sluggish U.S. Activewear business has been a concern. The macroeconomic headwinds have been hurting demand across regions such as Europe and Australia. We expect revenues for the Activewear and International businesses to be $245.3 million and $390.2 million, respectively, indicating a year-over-year decline of 8.3% and 4.3%.
On the last reported quarter’s earnings call, management cited a tough macro consumer backdrop for its categories in 2024. For the second quarter, Hanesbrands had projected net sales from continuing operations to be in the range of $1.335-$1.375 billion. The midpoint of the guidance indicates a nearly 6% year-over-year decline on a reported basis and an approximately 3% decline on an organic basis at constant currency.
On the flip side, HBI has been on track with the execution of its initiatives to simplify the business and reduce costs. Hanesbrands' reignite innerwear strategy has been working well. HBI has been seeing benefits from product innovation and expansion in the retail space. It has been making strategic actions and increasing marketing investments to aid sustainable growth for its Champion brand. Such strengths are likely to have aided margins and profitability.
For the second quarter, management had envisioned operating profit to grow approximately 40% year over year and operating margin to expand 300 basis points to 9% due to gains from lower input costs and cost savings. It had expected earnings per share of 9 cents.
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’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Hanesbrands Inc. Price and EPS Surprise
Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote
Hanesbrands currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season:
Under Armour (UAA - Free Report) currently has an Earnings ESP of +15.74% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly loss per share is pegged at 8 cents against earnings of 2 cents per share in the prior-year quarter.
The consensus mark for revenues is pegged at $1.1 billion, indicating a decrease of 13.5% from the figure reported in the prior-year quarter. UAA has a trailing four-quarter earnings surprise of 77.7%, on average.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.3 billion, which indicates an increase of 4.5% from the prior-year quarter.
The consensus estimate for the quarterly earnings per share of 90 cents indicates a rise of 5.9% from the year-ago quarter. TJX has a trailing four-quarter earnings surprise of 6.2%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3.
LULU is likely to register bottom and top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.43 billion, which indicates 10.2% growth from the prior-year quarter.
The consensus estimate for earnings is pegged at $2.96 per share, which implies a 10.5% increase from the year-ago quarter's actual. LULU has a trailing four-quarter earnings surprise of 7.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.