Hanesbrands Goes Negative
Hanesbrands (NYS: HBI) reported earnings on April 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Hanesbrands met expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Hanesbrands reported revenue of $1.01 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $1.01 billion on the same basis. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.27. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.33 per share. GAAP EPS were -$0.27 for Q1 versus $0.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.2%, 950 basis points worse than the prior-year quarter. Operating margin was 0.5%, 980 basis points worse than the prior-year quarter. Net margin was -2.7%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $4.77 billion. The average EPS estimate is $2.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 181 members out of 223 rating the stock outperform, and 42 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Hanesbrands a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanesbrands is buy, with an average price target of $33.22.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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