The 10-second takeaway
For the quarter ended June 30 (Q2), Hanesbrands missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Hanesbrands notched revenue of $1.18 billion. The eight analysts polled by S&P Capital IQ hoped for revenue of $1.25 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $1.17 billion.
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 $0.68. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.01 for Q2 were 99% lower than the prior-year quarter's $0.87 per share. (The prior-year quarter included $0.09 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 400 basis points worse than the prior-year quarter. Operating margin was 10.2%, 150 basis points worse than the prior-year quarter. Net margin was 0.1%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $4.54 billion. The average EPS estimate is $2.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 181 members out of 223 rating the stock outperform, and 42 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Hanesbrands a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanesbrands is buy, with an average price target of $34.50.
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