Factors to Influence Gildan Activewear's (GIL) Q3 Earnings
Gildan Activewear Inc. GIL is likely to register top and bottom-line declines when it reports third-quarter 2023 earnings results on Nov 2, before market open. The Zacks Consensus Estimate for revenues is pegged at $836.7 million, indicating a decline of 1.6% from the prior-year reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 72 cents, suggesting a 14.3% decline from the year-earlier quarter’s actual. The consensus mark has been unchanged in the past 30 days.
Gildan Activewear has a negative trailing four-quarter earnings surprise of 1.6%, on average. In the last reported quarter, the company delivered an earnings surprise of 3.3%.
Gildan Activewear, Inc. Price, Consensus and EPS Surprise
Gildan Activewear, Inc. price-consensus-eps-surprise-chart | Gildan Activewear, Inc. Quote
Key Factors to Note
GIL has been gaining market share, driven by its strong brand, product innovation and customer service. On the last reported quarter’s earnings call, Gildan Activewear expected a sequential improvement in its third-quarter 2023 operating margins. The company anticipated it to be just below the low end of 18-20%.
Gildan Activewear has been saving costs by optimizing its manufacturing processes. The company has a relatively short manufacturing cycle time and can adjust its manufacturing to incorporate demand changes. This can help the company avoid excess inventory and reduce the risk of stockouts, which can improve customer satisfaction and reduce costs.
Optimizing its manufacturing processes and implementing cost-reduction initiatives are expected to get reflected in the company’s profitability in the to-be-reported quarter.
On the flip side, Gildan Activewear has been witnessing near-term headwinds, driven by the macro environment, which has been shifting customers’ focus on lower-priced products.
On the last reported quarter’s earnings call, the company noted the demand environment to be sluggish, particularly for men's underwear and hosiery. However, GIL stated that it was witnessing sequential improvements, which are likely to have continued in the to-be-reported quarter. Gains from improving momentum for these products are anticipated to have contributed to the third-quarter performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Gildan Activewear has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Spectrum Brands Holdings, Inc. SPB has an Earnings ESP of +5.93% and currently sports a Zacks Rank #1. SPB is likely to register top-line growth when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $759.9 million, which suggests growth of 1.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for Spectrum Brands’ quarterly earnings has been increased by 5 cents in the past 30 days at $1.14 per share, suggesting growth of 137.5% from the year-ago quarter’s reported number. SPB delivered an Earnings ESP of +31.58% in the last reported quarter.
Caesars Entertainment CZR currently has an Earnings ESP of +10.4% and a Zacks Rank #2. CZR is likely to register top-line growth when it reports the third-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, suggesting 0.9% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Caesars Entertainment’s third-quarter earnings is pegged at 27 cents, suggesting 12.5% growth from the 24 cents reported in the year-ago quarter. The consensus mark has been increased by a penny in the past seven days.
Marriott International MAR currently has an Earnings ESP of +1.72% and a Zacks Rank #3. MAR is likely to register top-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.9 billion, suggesting 11% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Marriott International’s third-quarter earnings is pegged at $2.10, suggesting 24.3% growth from the $1.69 reported in the year-ago quarter. The consensus mark has been increased by a penny in the past seven days.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
