Back to top

Image: Bigstock

Gildan Activewear (GIL) Gears Up for Q2 Earnings: What to Know

Read MoreHide Full Article

Gildan Activewear Inc. (GIL - Free Report) is likely to register bottom and top-line growth when it reports second-quarter 2024 results on Aug 1, before market open. The Zacks Consensus Estimate for revenues is pegged at $851.9 million, indicating a rise of 1.4% from the year-ago reported figure.

The consensus estimate for earnings is pegged at 71 cents per share, which indicates a 12.7% increase from the year-ago quarter’s actual. The consensus mark has remained unchanged in the past 30 days.

Gildan Activewear has a trailing four-quarter average earnings surprise of 5.6%. In the last reported quarter, the company delivered an earnings surprise of 13.5%.

Key Factors to Note

Gildan Activewear’s quarterly performance is likely to have been supported by a robust business model and the sturdy execution of its strategic priorities. The company has been gaining from higher market share, led by strength in brands, product innovation and solid customer service. Momentum in ring spun and fleece products is likely to have been a tailwind.

The company has been enhancing its commercial capabilities to deliver the best offering to customers. Optimization of manufacturing processes and the implementation of cost-reduction initiatives are expected to have aided the company’s profitability. Management, in its last earnings call, had projected sales to be flat to up low single digits year over year for the second quarter.

On the flip side, a tough operating landscape, including the inflationary pressures, is a concern. Management, in its last earnings call, cited that it remains cautious of the general concerns regarding a softening and more value-focused consumer. The company has also been witnessing softness in hosiery and underwear for a while.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time around. 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 not the case here.

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. price-eps-surprise | Gildan Activewear, Inc. Quote

Gildan Activewear has an Earnings ESP of +0.94% and a Zacks Rank #4 (Sell), at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:

Adidas (ADDYY - Free Report) currently has an Earnings ESP of +2.39% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADDYY is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.4 billion, which indicates 9.2% growth from the figure reported in the year-ago quarter. 

The consensus estimate for ADDYY’s earnings is pegged at 70 cents a share, indicating a 169.2% rise from the year-ago quarter’s actual. The consensus mark has risen significantly from 20 cents per share pegged in the past 30 days.

MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +15.35% and a Zacks Rank of 3. MGM is likely to register bottom and top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, indicating 6% growth from the figure reported in the year-ago quarter.

The consensus estimate for MGM Resorts’ earnings is pegged at 66 cents a share, implying an 11.9% increase from the year-earlier quarter. The consensus mark has moved down by a penny in the past 30 days.

Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 3. RL is likely to register a top-line decrease when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.5 billion, indicating a 0.6% drop from the figure reported in the prior-year quarter.

The consensus estimate for Ralph Lauren’s earnings is pegged at $2.45 per share, implying a 4.7% jump from the year-ago quarter. The consensus mark has moved up a penny in the past seven days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in