Hanesbrands Earnings Preview

Motley Fool Staff

Hanesbrands (NYS: HBI) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Wednesday, Nov. 2. Hanesbrands is a consumer goods company with a portfolio of apparel brands. It designs, manufactures, sources, and sells a range of apparel essentials such as t-shirts, innerwear, casualwear, activewear, socks, and hosiery.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Hanesbrands, with seven of 10 rating it a buy and the remainder rating it a hold. Analysts like Hanesbrands better than competitor Warnaco Group overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $1.36 billion in revenue this quarter. That would represent a rise of 16.2% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.82 per share. Estimates range from $0.80 to $0.84.

What our community says:
CAPS All-Stars are solidly behind the stock with 83.6% granting it an "outperform" rating. The community at large agrees with the All-Stars with 81.4% giving it a rating of "outperform." Hanesbrands' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

34.9%

34.2%

30.3%

31.0%

Operating Margin

12.1%

9.8%

7.1%

9.7%

Net Margin

7.1%

4.6%

2.4%

5.2%

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At the time thisarticle was published

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