Clothing company Hanesbrands (NYSE:HBI) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Hanesbrands beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $937.1 million, down 2.5% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.
Is Hanesbrands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hanesbrands’s revenue to grow 2.3% year on year to $899.4 million, a reversal from the 5.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Hanesbrands’s peers in the apparel and accessories segment, some have already reported their Q4 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 1.2%, and Under Armour reported a revenue decline of 5.7%, topping estimates by 4.5%. VF Corp traded up 1.4% following the results while Under Armour was down 11.7%.
Read our full analysis of VF Corp’s results here and Under Armour’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 2.7% on average over the last month. Hanesbrands is down 10.7% during the same time and is heading into earnings with an average analyst price target of $8.19 (compared to the current share price of $7.58).
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