Factors to Know Ahead of Hanesbrands' (HBI) Q4 Earnings
Hanesbrands Inc. HBI is slated to report fourth-quarter 2022 earnings on Feb 2. This designer, manufacturer and apparel seller is likely to have witnessed revenue and earnings decline in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,463 million, suggesting a decrease of 16.5% from the prior-year quarter’s tally. The Zacks Consensus Estimate for quarterly earnings has increased a penny in the past 30 days to 8 cents per share, suggesting an 81.8% decline from the prior-year quarter’s reported figure.
Hanesbrands witnessed an earnings surprise of 0.00% in the last reported quarter. HBI has a trailing four-quarter earnings surprise of 2.2%, on average.
Factors to Note
Hanesbrands has been reeling under inflation and elevated costs for a while to support new retail space gains and product innovation. These, along with a tough macroeconomic backdrop and soft consumer demand, are likely to have dented the fourth-quarter performance.
HBI has been exposed to unfavorable currency fluctuations for a while due to its international presence. The weakening of foreign currencies against the U.S. dollar is likely to have been a concern. On its last earnings call, management projected net sales from continuing operations to include a projected headwind of nearly $68 million from currency rates during the quarter under review. Currency headwinds are expected to have hurt adjusted operating profit by nearly $9 million in the fourth quarter.
Management recently unveiled that it now anticipates delivering fourth-quarter 2022 net sales slightly above the upper end of its previously provided range. Also, management expects adjusted operating profit to come in at the midpoint of the guidance range. For fourth-quarter 2022, net sales from continuing operations are expected to be $1.40- $1.45 billion. Adjusted operating profit from continuing operations is expected in the range of $70- $100 million. HanesBrands expects adjusted earnings per share (EPS) from continuing operations in the 4-11 cents range for the fourth quarter.
Management highlighted that it is impressed with the fourth quarter net sales and adjusted operating profit performance amid a volatile macro environment wherein 2022 inventories ended below the prior year’s level. HBI’s Full Potential plan, which includes enhancing the global Champion brand, re-igniting innerwear growth, driving consumer-centricity and focusing on the portfolio, looks encouraging.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but that is not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Hanesbrands has a Zacks Rank of 1 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season:
BJ's Wholesale BJ currently has an Earnings ESP of +18.48% and a Zacks Rank of 1. BJ is likely to register top-line growth from the year-ago fiscal quarter’s reported figure when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.90 billion, suggesting 12.5% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s earnings for the fiscal fourth quarter is pegged at 88 cents, suggesting a 10% rise from 80 cents reported in the year-ago fiscal quarter. The consensus mark has increased a couple of cents in the past 30 days.
lululemon athletica LULU currently has an Earnings ESP of +0.07% and a Zacks Rank of 3. LULU is likely to register a top-line improvement when it reports fourth-quarter fiscal 2022 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.7 billion, calling for growth of 26.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $4.24 suggests a 25.8% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
The Kraft Heinz Company KHC currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.1 billion, indicating a rise of almost 6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Hanesbrands Inc. (HBI) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
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