HanesBrands Earnings Show Mixed Signals Despite Share Increase

In a recent report, HanesBrands exhibits a modest share price increase, but faces challenges with projected revenue decline. Analysts are watching closely as the company prepares to release its earnings report, which may impact future stock performance.

Date: 21-09-2024

AI Rating: 5

HanesBrands (HBI), operating in the Textile - Apparel industry, has experienced a price increase of +0.43% during the last trading session, outpacing the S&P 500's loss of 0.19%. The stock has surged 14.12% over the past month, outperforming the Consumer Discretionary sector and S&P 500 benchmarks.

Looking ahead, HanesBrands is projected to report earnings of $0.12 per share, reflecting a significant year-over-year growth of 20%. Conversely, the anticipated revenue stands at $933.3 million, which indicates a notable decrease of 38.25% compared to the same quarter last year.

For the fiscal year, earnings are expected to be $0.35 per share, which corresponds to an impressive increase of 483.33%, while revenue forecasts at $3.61 billion represent a decline of 35.98% from the prior year. Notably, while the projected earnings per share (EPS) reveals potential for growth, the significant drop in revenue could raise concerns among investors regarding overall profitability.

Currently, HanesBrands holds a Zacks Rank of #3 (Hold), suggesting that analysts are cautious but believe the stock is not in immediate danger. Furthermore, the Forward P/E ratio of 19.86 indicates a premium compared to its industry average of 19.31. This might suggest that the stock is perceived as somewhat overvalued, especially coupled with the negative revenue growth outlook.

The Zacks Industry Rank also reflects that the Textile - Apparel industry is positioned in the lower tier, which could further augment investor caution.

Stocks: HBI