Hanesbrands's Earnings Beat Last Year's by 22%

Hanesbrands (NYS: HBI) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Hanesbrands met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased significantly.


Gross margins shrank, operating margins expanded, net margins expanded.

Revenue details
Hanesbrands tallied revenue of $1.22 billion. The eight analysts polled by S&P Capital IQ anticipated revenue of $1.22 billion on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $1.23 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.11. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share. GAAP EPS of $1.10 for Q3 were 21% higher than the prior-year quarter's $0.91 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.8%, 180 basis points worse than the prior-year quarter. Operating margin was 12.6%, 20 basis points better than the prior-year quarter. Net margin was 9.0%, 160 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $1.06.

Next year's average estimate for revenue is $4.54 billion. The average EPS estimate is $2.56.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 180 members out of 222 rating the stock outperform, and 42 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Hanesbrands a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanesbrands is buy, with an average price target of $36.10.

With hundreds of companies like Hanesbrands competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

The article Hanesbrands's Earnings Beat Last Year's by 22% originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum