Hot Stock Buzz: Hanesbrands Inc (NYSE: HBI)

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.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.