On Wednesday, Shares of Hanesbrands Inc (NYSE: HBI) gained 0.32% to $22.12. The stock opened its trade at $22.04 and after floating in a price range of $21.92 to $22.30; the stock grabbed the investor’s attention and traded 2.08M shares as compared to its average daily volume of 6.98M shares.
HanesBrands (HBI), a leading global marketer of everyday basic apparel under world-class brands, recently declared first-quarter 2018 results that exceeded company guidance for net sales, organic sales and EPS.
For the quarter ended March 31, 2018, the company stated net sales growth of 7 percent to $1.470B as compared to a guidance range of $1.420B to $1.440B. GAAP diluted earnings per share for continuing operations increased 16 percent to $0.22 contrast with guidance of $0.17 to $0.20, and adjusted EPS excluding actions reduced 10 percent to $0.26, contrast with guidance of $0.23 to $0.25. The EPS comparisons to last year reflect a higher corporate tax rate for 2018 as a result of U.S. tax reform. Hanes has reiterated its full-year guidance and issued net sales and EPS guidance for the second-quarter 2018.
2018 Financial Guidance:
Hanes has reiterated full-year financial guidance for 2018 and has issued second-quarter guidance for net sales and EPS.
The company continues to expect full-year 2018 net sales of $6.720B to $6.820B, GAAP operating profit of $870.0M to $905.0M, adjusted operating profit excluding actions of $950.0M to $985.0M, GAAP EPS of $1.54 to $1.62, adjusted EPS excluding actions of $1.72 to $1.80, and net cash from operations of $675.0M to $750.0M.
With U.S. income tax reform, the company anticipates the 2018 full-year tax rate to be about 16 percent.
Second-Quarter Guidance: Second-quarter net sales are expected to be in the range of $1.70B to $1.725B. At the midpoint of this guidance range, constant-currency organic sales are expected to decline less than 1 percent. GAAP EPS is expected to be $0.38 to $0.40, and adjusted EPS excluding actions is expected to be $0.44 to $0.46. Charges related to acquisition integration and other actions are expected to total about $25.0M in the second quarter.
HBI has a market value of $7.89B while its EPS was booked as $1.44 in the last 12 months. The stock has 356.61M shares outstanding. In the profitability analysis, the company has gross profit margin of 41.50% while net profit margin was 1.10%. Beta value of the company was 0.72; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.40.