) is set to report fourth-quarter fiscal 2013 results on Jan 29.
Last quarter, it posted a positive surprise of 7.8%. Let us see
how things are shaping up for this announcement.
Factors to Be Considered This Quarter
Hanesbrands has been reporting decent earnings results for the
past few quarters backed by the strategic initiative -
In spite of delivering mixed results in the third quarter,
Hanesbrands upped its earnings and sales guidance for
fourth-quarter fiscal 2013 on the back of opportunity to expand
its margins in the coming quarter due to lower cotton costs and
the Innovate-to-Elevate strategy, which focuses on high-margin
Hanesbrands raised the earnings per share guidance to a range
of $3.75 to $3.85 from $3.50 to $3.65. Management expects the
Maidenform acquisition contributed 10 cents to the earnings
upside. The company expects operating profits between $580
million and $590 million for the year, higher than the previous
range of $550 million to $575 million. Net sales are expected
slightly above $4.6 billion compared with $4.55 billion in the
Our proven model does not conclusively show that Hanesbrands
is likely to beat earnings this quarter. A stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimate.
However, that is not the case here due to the following
ESP for Hanesbrands is 0.00%.
Hanesbrands' Zacks Rank when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), with Earnings ESP of +5.62% and a Zacks Rank #2 (Buy).
Micheal Kors Inc.
), with Earnings ESP of +1.15% and a Zacks Rank #2.
Abercrombie & Fitch Co.
), with Earnings ESP of +1.96% and a Zacks Rank #2.
ABERCROMBIE (ANF): Free Stock Analysis Report
COLUMBIA SPORTS (COLM): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
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