Why Hanesbrands, Inc. Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of apparel company Hanesbrands (NYSE: HBI  ) rallied 10% today after its quarterly results and outlook blew out analyst expectations.

So what: The stock has soared over the past year on better-than-expected growth, and today's Q4 results -- adjusted EPS of $0.90 topped Wall Street by $0.08 on a revenue increase of 11% -- coupled with upbeat guidance only reinforce that momentum. In fact, the company ended 2013 with record revenue, EPS, and margins despite sluggish consumer spending, suggesting that it still has plenty of room to grow if and when the retail environment improves. 

Now what: Management now sees full-year 2014 EPS of $4.60-$4.80, well above the consensus of $4.46, on revenue of $5.1 billion. "We are raising our 2014 earnings guidance because we are increasingly confident that the momentum of our Innovate-to-Elevate strategy will deliver even better results," said Chairman and CEO Richard Noll. "The combination of our brand power, low-cost supply chain and innovation platforms is generating value and growth opportunities." Of course, with the stock now up 100% from its 52-week lows, I'd wait for some of the excitement to fade before buying into those prospects. 

More compelling ways to grow
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.


Read/Post Comments (0) | Recommend This Article (0)

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2817089, ~/Articles/ArticleHandler.aspx, 10/30/2014 12:44:40 PM

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...


Advertisement