Hanesbrands Goes Negative

Hanesbrands (NYSE: HBI  ) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hanesbrands met expectations on revenue and exceeded expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Hanesbrands reported revenue of $1.01 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $1.01 billion on the same basis. GAAP reported sales were 2.7% lower than the prior-year quarter's $1.04 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 -$0.27. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.33 per share. GAAP EPS were -$0.27 for Q1 versus $0.49 per share for the prior-year quarter.

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 25.2%, 950 basis points worse than the prior-year quarter. Operating margin was 0.5%, 980 basis points worse than the prior-year quarter. Net margin was -2.7%, 730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $4.77 billion. The average EPS estimate is $2.52.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 181 members out of 223 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 $33.22.

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