The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Hanesbrands met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
Hanesbrands reported revenue of $1.15 billion. The eight analysts polled by S&P Capital IQ anticipated revenue of $1.15 billion on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $1.15 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 $0.78. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. GAAP EPS of $0.80 for Q4 were 95% higher than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.5%, 540 basis points better than the prior-year quarter. Operating margin was 13.3%, 670 basis points better than the prior-year quarter. Net margin was 7.0%, 340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $999.0 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $4.67 billion. The average EPS estimate is $3.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 184 members out of 225 rating the stock outperform, and 41 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 $40.45.
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