Hanesbrands' Latest EPS Top Last Year's by 41%

Seth Jayson, The Motley Fool
Updated

Hanesbrands (NYS: HBI) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hanesbrands missed estimates on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded significantly.

Gross margin shrank, operating margin dropped, and net margin increased.

Revenue details
Hanesbrands reported revenue of $1.15 billion. The 10 analysts polled by S&P Capital IQ predicted sales of $1.23 billion on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $1.15 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
EPS came in at $0.41. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.41 for Q4 were 41% higher than the prior-year quarter's $0.29 per share.

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

Margin details
For the quarter, gross margin was 29.1%, 120 basis points worse than the prior-year quarter. Operating margin was 6.6%, 50 basis points worse than the prior-year quarter. Net margin was 3.6%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is -$0.34.

Next year's average estimate for revenue is $4.80 billion. The average EPS estimate is $2.54.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members out of 226 rating the stock outperform, and 43 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Hanesbrands a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanesbrands is outperform, with an average price target of $33.40.

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At the time thisarticle 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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