The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Gildan Activewear beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins expanded across the board.
Gildan Activewear logged revenue of $420.8 million. The 12 analysts polled by S&P Capital IQ anticipated a top line of $400.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $303.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS were $0.29 for Q1 compared to -$0.38 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 2,470 basis points better than the prior-year quarter. Operating margin was 9.0%, 2,360 basis points better than the prior-year quarter. Net margin was 8.4%, 2,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $519.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $2.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 246 members out of 264 rating the stock outperform, and 18 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Gildan Activewear a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gildan Activewear is outperform, with an average price target of $38.68.
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