Recs

0

Hanesbrands Earnings Preview

After beating estimates last quarter by $0.09, Hanesbrands (NYSE: HBI  ) has set the standard for itself. The company will unveil its latest earnings today. 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 six of nine 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 $1.24 billion in revenue this quarter. That would represent a rise of 7.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.52 per share. Estimates range from $0.48 to $0.57.

What our community says:
CAPS All-Stars are solidly backing the stock with 84.1% assigning it an outperform rating. The community at large agrees with the All-Stars with 82.4% giving it a rating of outperform. Fools are bullish on Hanesbrands and haven't been shy with their opinions lately, logging 102 posts in the past 30 days. Hanesbrands' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has now gone up for three straight quarters.

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

Q3

Q2

Q1

Q4

Gross Margin

34.6%

34.9%

34.2%

30.3%

Operating Margin

12.4%

12.1%

9.8%

7.1%

Net Margin

7.4%

7.1%

4.6%

2.4%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Hanesbrands now.

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.

Earnings estimates provided by Zacks.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 1761052, ~/Articles/ArticleHandler.aspx, 5/27/2012 5:56:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:01 PM
HBI $27.05 Up +0.37 +1.39%
Hanesbrands, Inc. CAPS Rating: **

Advertisement