What Does Wall Street See for Hanesbrands' Q2?

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Hanesbrands (NYS: HBI) is expected to report Q2 earnings around July 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Hanesbrands' revenues will increase 1.7% and EPS will compress 43.7%.

The average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.49.


Revenue details
Last quarter, Hanesbrands reported revenue of $1.01 billion. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.04 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.27. GAAP EPS were -$0.27 for Q1 versus $0.49 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 25.2%, 900 basis points worse than the prior-year quarter. Operating margin was 0.6%, 920 basis points worse than the prior-year quarter. Net margin was -2.7%, 730 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $4.75 billion. The average EPS estimate is $2.56.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 179 members out of 221 rating the stock outperform, and 42 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Hanesbrands a green thumbs-up, and 13 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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