Gildan Activewear Inc
) is set to report its third-quarter fiscal 2014 results on Jul 31,
2014. Last quarter, it posted a positive surprise of 1.6%. Let us
see how things are developing for this announcement.
Growth Factors This Quarter
Increased year-over-year cotton prices and inflationary pressures
are likely to remain a drag on the company's earnings. Moreover,
sales at the company's Printwear segment have not picked up as per
expectations after a severe winter marred its earlier quarterly
However, the company is enhancing its operational efficiency as
well as executing its retail initiatives which are likely to
cushion earnings going forward. Investor focus for this quarter
will also be on the company's update on its newest facility in
Our proven model does not conclusively project Gildan Activewear as
likely to beat earnings this quarter. This is because a stock needs
to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to
happen. This is not the case here as you will see below.
ESP for Gildan Activewear is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at 96
Gildan Activewear carries a Zacks Rank #2 which increases the
predictive power of ESP. However, we need to have a positive ESP to
be confident of an earnings surprise call. We caution against
stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into
an earnings announcement, especially when the company is witnessing
negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these to have the right combination of elements to post an
Archer Daniels Midland Co. (
) Earnings ESP stands at +5.26% and it carries a Zacks Rank #2.
Colgate-Palmolive Co. (
) with an Earnings ESP of +1.37% holds a Zacks Rank #2.
Newell Rubbermaid Inc. (
) has an Earnings ESP of +1.85% and a Zacks Rank #2.
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GILDAN ACTVWEAR (GIL): Free Stock Analysis
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ARCHER DANIELS (ADM): Free Stock Analysis
COLGATE PALMOLI (CL): Free Stock Analysis
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