The 10-second takeaway
For the quarter ended March 31 (Q2), Gildan Activewear met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Margins increased across the board.
Gildan Activewear booked revenue of $523.0 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $518.8 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $482.6 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 $0.59. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. GAAP EPS of $0.59 for Q2 were 168% higher than the prior-year quarter's $0.22 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 28.9%, much better than the prior-year quarter. Operating margin was 14.8%, 810 basis points better than the prior-year quarter. Net margin was 13.8%, 820 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $627.6 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $2.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 242 members out of 259 rating the stock outperform, and 17 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 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 $40.45.
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