The apparel chain
) is set to report its 2013-first quarter results on April 23. In
the last reported quarter, the company posted a 6.5% positive
surprise. Let's see how things are shaping up for this
Growth Factors This Past Quarter
Hanesbrands benefited from continued strong sales, innovations
and cost control measures in the previous quarter.
Revenue growth was fuelled by the undergarment categories like
Tagless, Comfort Blend and Smart Sizes, which consistently occupy
major share in the market. Gross profit expanded due to favorable
pricing. Hanesbrands' focus on the 'Innovate to Elevate' strategy
is helping the company boost its earnings. The strategy focuses
on value added, higher-priced and higher margin items that can be
supplied at lower cost.
Our proven model does not conclusively show that Reynolds
American is likely to beat earnings this quarter. That is because
a stock needs to have both a positive Zacks Earnings Expected
Surprise Prediction (ESP) and a Zacks Rank of #1, 2 or 3 for this
to happen (Read:
Zacks Earnings ESP: A Better Method
). That is not the case here as you will see below.
The Most Accurate estimate and the Zacks Consensus Estimate
stands at 50 cents. That is a difference of 0.00%.
Zacks Rank #3 (Hold):
Reynolds'Zacks Rank #2 (Buy) lowers the predictive power of ESP
because the Zacks Rank #2 when combined with a non-positive ESP
makes surprise prediction difficult. We caution against stocks
with Zacks Rank #4 and #5 (Sell rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
), Earnings ESP of +4.88% and a Zacks Rank #1 (Strong Buy)
Kraft Foods Group, Inc.
), Earnings ESP of +3.13% and a Zacks Rank #2 (Buy)
), Earnings ESP of +100.00% and a Zacks Rank #3 (Hold)
AMAZON.COM INC (AMZN): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
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