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Factors to Know Ahead of Hanesbrands' (HBI) Q3 Earnings
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Hanesbrands Inc. (HBI - Free Report) is slated to report third-quarter 2022 earningson Nov 9. This designer, manufacturer and seller of apparel is likely to have witnessed revenue and earnings decline in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,753 million, suggesting a decrease of 2% from the prior-year quarter’s tally. The Zacks Consensus Estimate for quarterly earnings has dipped a penny in the past 30 days to 29 cents per share, suggesting a 45.3% decline from the prior-year quarter’s reported figure.
Hanesbrands witnessed a negative earnings surprise of 15.2% in the last reported quarter. HBI has a trailing four-quarter earnings surprise of 5.4%, on average.
Factors to Note
Hanesbrands has been reeling under rising inflation and elevated costs for a while to support new retail space gains and product innovation. HBI persistently grapples with COVID-induced supply-chain headwinds. These, along with a tough macroeconomic backdrop and soft consumer demand, are likely to have dented the third-quarter performance.
HBI has been exposed to unfavorable currency fluctuations for a while due to its international presence. The weakening of foreign currencies against the U.S. dollar is likely to have been a concern. On its last earnings call, management projected net sales from continuing operations of $1.73- $1.78 billion for third-quarter 2022, including a projected headwind of nearly $58 million from currency rates. Hanesbrands anticipated an adjusted operating profit from continuing operations of $160-$180 million, including a projected headwind of nearly $8 million from currency rates. HBI envisioned adjusted earnings per share from continuing operations of 27-32 cents for the quarter under review.
HBI’s Full Potential plan, which includes enhancing the global Champion brand, re-igniting innerwear growth, driving consumer-centricity and focusing on the portfolio, looks encouraging. Management continues streamlining the portfolio and shedding non-core lower-margin businesses for business simplification. The Zacks Consensus Estimate for sales in the Activewear segment is pegged at $495 million, suggesting an improvement from $463 million reported in the prior quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hanesbrands has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank of 1, currently. BJ is likely to register top-line growth from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.62 billion, suggesting 8.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s earnings for the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has been stable in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting 9.2% growth from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has been stable in the past 30 days at $3.15 a share. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
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Factors to Know Ahead of Hanesbrands' (HBI) Q3 Earnings
Hanesbrands Inc. (HBI - Free Report) is slated to report third-quarter 2022 earningson Nov 9. This designer, manufacturer and seller of apparel is likely to have witnessed revenue and earnings decline in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,753 million, suggesting a decrease of 2% from the prior-year quarter’s tally. The Zacks Consensus Estimate for quarterly earnings has dipped a penny in the past 30 days to 29 cents per share, suggesting a 45.3% decline from the prior-year quarter’s reported figure.
Hanesbrands witnessed a negative earnings surprise of 15.2% in the last reported quarter. HBI has a trailing four-quarter earnings surprise of 5.4%, on average.
Factors to Note
Hanesbrands has been reeling under rising inflation and elevated costs for a while to support new retail space gains and product innovation. HBI persistently grapples with COVID-induced supply-chain headwinds. These, along with a tough macroeconomic backdrop and soft consumer demand, are likely to have dented the third-quarter performance.
HBI has been exposed to unfavorable currency fluctuations for a while due to its international presence. The weakening of foreign currencies against the U.S. dollar is likely to have been a concern. On its last earnings call, management projected net sales from continuing operations of $1.73- $1.78 billion for third-quarter 2022, including a projected headwind of nearly $58 million from currency rates. Hanesbrands anticipated an adjusted operating profit from continuing operations of $160-$180 million, including a projected headwind of nearly $8 million from currency rates. HBI envisioned adjusted earnings per share from continuing operations of 27-32 cents for the quarter under review.
HBI’s Full Potential plan, which includes enhancing the global Champion brand, re-igniting innerwear growth, driving consumer-centricity and focusing on the portfolio, looks encouraging. Management continues streamlining the portfolio and shedding non-core lower-margin businesses for business simplification. The Zacks Consensus Estimate for sales in the Activewear segment is pegged at $495 million, suggesting an improvement from $463 million reported in the prior quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hanesbrands has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank of 1, currently. BJ is likely to register top-line growth from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.62 billion, suggesting 8.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s earnings for the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has been stable in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. COST is expected to register top and bottom-line growth from the respective year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting 9.2% growth from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for Costco’s quarterly earnings has been stable in the past 30 days at $3.15 a share. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.