Hanesbrands Earnings: Here’s Why Investors are Happy Now
Hanesbrands Inc. (NYSE:HBI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.76%.
Hanesbrands Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 77.61% to $1.19 in the quarter versus EPS of $0.67 in the year-earlier quarter.
Revenue: Rose 1.57% to $1.2 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hanesbrands Inc. reported adjusted EPS income of $1.19 per share. By that measure, the company beat the mean analyst estimate of $0.94. It missed the average revenue estimate of $1.21 billion.
Quoting Management: “We achieved record profit margins and EPS in the second quarter with each business segment achieving improved profitability,” Hanes Chairman and CEO Richard A. Noll said. “Our Innovate-to-Elevate platforms continue to excel and are quickly delivering results for us and our retail partners. We are on solid footing to continue to deliver value for consumers, retailers and investors. We have moved into the low end of our target range for sustained operating profitability sooner than anticipated, and our cash flow and solid balance sheet have allowed us to begin paying quarterly dividends and agree to acquire Maidenform Brands.”
Key Stats (on next page)…
Revenue increased 26.84% from $945.46 million in the previous quarter. EPS increased 133.33% from $0.51 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.14 and has not changed. For the current year, the average estimate has moved up from a profit of $3.45 to a profit of $3.46 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)