Hanesbrands (HBI) Queued for Q3 Earnings: Things to Consider
Hanesbrands Inc. HBI is likely to register a top- and bottom-line decline when it reports third-quarter 2023 earnings on Nov 9. The Zacks Consensus Estimate for revenues is pegged at $1.5 billion, suggesting a decline of 7.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at 11 cents per share in the past 30 days. The projection indicates a decline of 62.1% from the year-ago quarter’s reported figure.
The basic apparel company has a trailing four-quarter earnings surprise of 9.4%, on average. HBI posted an earnings surprise of 50% in the last reported quarter.
Things To Consider
Hanesbrands has been battling an inflationary environment, which is weighing on consumers’ pockets and leading to sluggish demand. The company is operating amid a challenging apparel market, mainly in Australia. Softness in the U.S. activewear category has also been a concern. Persistence of any of these factors is likely to have hurt Hanesbrands’ third-quarter 2023 performance. We expected activewear sales of $410.7 million in the quarter, down 10.9% year over year.
Hanesbrands Inc. Price and EPS Surprise
Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote
For third-quarter 2023, management expects net sales from continuing operations in the range of $1.52-$1.57 billion, including a projected tailwind of nearly $3 million from currency rates. At the midpoint, the guidance reflects less than an 8% year-over-year net sales decline on a reported and constant-currency basis. HBI expects adjusted earnings per share from continuing operations in the 7-13 cents range, suggesting a year-over-year decline.
Adjusted operating profit from continuing operations is expected in the range of $130-$150 million in the to-be-reported quarter. Our model suggests the metric to come in at $147.1 million, indicating a decline of 12.4%.
Hanesbrands is progressing with its Full Potential plan, which offers some respite. The plan includes reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio, among others.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hanesbrands currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With a Favorable Combination
Here are some companies you may want to consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat.
Costco COST currently has an Earnings ESP of +2.02% and a Zacks Rank of 2. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of almost 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1% on average.
Ralph Lauren RL currently has an Earnings ESP of +1.80% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly EPS of $1.92 suggests a drop of 13.9% from the year-ago quarter’s levels.
Ralph Lauren’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.61 billion, indicating an increase of 1.9% from the figure reported in the year-ago quarter. RL has a trailing four-quarter earnings surprise of 17.3% on average.
NIKE NKE currently has an Earnings ESP of +0.45% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for NKE’s quarterly revenues is pegged at $13.4 billion, indicating a rise of 0.7% from the figure reported in the prior-year quarter.
The consensus estimate for NIKE’s earnings per share of 85 cents remains flat year over year. NIKE has a trailing four-quarter earnings surprise of 27.1%, on average.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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Hanesbrands Inc. (HBI) : Free Stock Analysis Report
