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Hanesbrands (HBI) Readies for Q1 Earnings: Things to Note
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Hanesbrands Inc. (HBI - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter 2023 earnings on May 3. The Zacks Consensus Estimate for revenues is pegged at $1,375 million, suggesting a drop of 12.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at a loss of 6 cents per share. The projection indicates a deterioration from the year-ago quarter’s earnings of 34 cents.
Hanesbrands has a trailing four-quarter negative earnings surprise of 1.6%, on average. The renowned basic apparel company delivered a negative earnings surprise of 12.5% in the last reported quarter.
We expect first-quarter revenues to decrease 12.9% to $1,372.1 million and the bottom line to drop considerably to a loss of 7 cents.
Hanesbrands Inc. Price, Consensus and EPS Surprise
HBI has been battling commodity and freight cost inflation, which has been weighing on consumers’ pockets and leading to sluggish demand. These headwinds hurt the company’s sales in the fourth quarter and are likely to have persisted in the first quarter of 2023 as well. The first-quarter 2023 profit is likely to have been largely hurt by these obstacles, increased currency woes and elevated interest expenses.
On its last earnings call, management stated that it expects gross and operating margin pressure to continue in the first half of 2023 as it sells through the remainder of its higher-cost inventory. The adjusted gross profit margin in the first quarter of 2023 is expected to have contracted around 300 bps, reflecting headwinds from freight and commodity inflation.
For the first quarter of 2023, net sales from continuing operations are expected in the range of $1.35-$1.40 billion, including a projected headwind of nearly $35 million from currency rates. At the midpoint, the guidance implies a nearly 11% decline on a cc basis and a 13% decline on a reported basis.
The adjusted operating profit from continuing operations is expected in the range of $50-$70 million, including a projected headwind of nearly $4 million from currency rates. The adjusted loss per share from continuing operations is envisioned in the 9-4 cent range for the first quarter.
However, Hanesbrands has been progressing with its Full Potential plan. This includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. A focus on innovation has also been a driver.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kellogg this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kellogg has a Zacks Rank #3 and an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +6.76% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports first-quarter fiscal 2023 results. The consensus mark for BJ’s quarterly revenues is pegged at $4.8 billion, which suggests a jump of 6.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s bottom line has remained unchanged at 84 cents per share in the past 30 days. The consensus estimate indicates a 3.5% drop from the year-ago quarter’s reported figure.
Deckers Outdoor Corporation (DECK - Free Report) currently has an Earnings ESP of +6.14% and a Zacks Rank of 2. DECK is likely to register a top-line decline when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for revenues is pegged at $716.5 million, suggesting a dip of 2.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Deckers’ quarterly earnings has increased from $2.57 per share to $2.63 in the past 30 days. The estimate indicates growth of 4.8% from the figure reported in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of nearly 31%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. LULU is expected to register a top-and-bottom-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.93 suggests growth of 30.4% from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
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Hanesbrands (HBI) Readies for Q1 Earnings: Things to Note
Hanesbrands Inc. (HBI - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter 2023 earnings on May 3. The Zacks Consensus Estimate for revenues is pegged at $1,375 million, suggesting a drop of 12.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at a loss of 6 cents per share. The projection indicates a deterioration from the year-ago quarter’s earnings of 34 cents.
Hanesbrands has a trailing four-quarter negative earnings surprise of 1.6%, on average. The renowned basic apparel company delivered a negative earnings surprise of 12.5% in the last reported quarter.
We expect first-quarter revenues to decrease 12.9% to $1,372.1 million and the bottom line to drop considerably to a loss of 7 cents.
Hanesbrands Inc. Price, Consensus and EPS Surprise
Hanesbrands Inc. price-consensus-eps-surprise-chart | Hanesbrands Inc. Quote
Factors to Consider
HBI has been battling commodity and freight cost inflation, which has been weighing on consumers’ pockets and leading to sluggish demand. These headwinds hurt the company’s sales in the fourth quarter and are likely to have persisted in the first quarter of 2023 as well. The first-quarter 2023 profit is likely to have been largely hurt by these obstacles, increased currency woes and elevated interest expenses.
On its last earnings call, management stated that it expects gross and operating margin pressure to continue in the first half of 2023 as it sells through the remainder of its higher-cost inventory. The adjusted gross profit margin in the first quarter of 2023 is expected to have contracted around 300 bps, reflecting headwinds from freight and commodity inflation.
For the first quarter of 2023, net sales from continuing operations are expected in the range of $1.35-$1.40 billion, including a projected headwind of nearly $35 million from currency rates. At the midpoint, the guidance implies a nearly 11% decline on a cc basis and a 13% decline on a reported basis.
The adjusted operating profit from continuing operations is expected in the range of $50-$70 million, including a projected headwind of nearly $4 million from currency rates. The adjusted loss per share from continuing operations is envisioned in the 9-4 cent range for the first quarter.
However, Hanesbrands has been progressing with its Full Potential plan. This includes growing the global Champion brand, reigniting innerwear growth, driving consumer-centricity and focusing on the portfolio. A focus on innovation has also been a driver.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kellogg this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Kellogg has a Zacks Rank #3 and an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +6.76% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports first-quarter fiscal 2023 results. The consensus mark for BJ’s quarterly revenues is pegged at $4.8 billion, which suggests a jump of 6.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s bottom line has remained unchanged at 84 cents per share in the past 30 days. The consensus estimate indicates a 3.5% drop from the year-ago quarter’s reported figure.
Deckers Outdoor Corporation (DECK - Free Report) currently has an Earnings ESP of +6.14% and a Zacks Rank of 2. DECK is likely to register a top-line decline when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for revenues is pegged at $716.5 million, suggesting a dip of 2.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Deckers’ quarterly earnings has increased from $2.57 per share to $2.63 in the past 30 days. The estimate indicates growth of 4.8% from the figure reported in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of nearly 31%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. LULU is expected to register a top-and-bottom-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.93 suggests growth of 30.4% from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.