Here's How Hanesbrands (HBI) Looks Ahead of Q2 Earnings

Hanesbrands Inc. HBI is likely to post deterioration in the top and bottom line when it reports second-quarter 2020 results on Jul 30. The Zacks Consensus Estimate for second-quarter earnings is pegged at 2 cents per share, which suggests a decline from 45 cents registered in the year-ago quarter. Nevertheless, the earnings estimate has gone up by a cent in the past 7 days. The consensus estimate for quarterly revenues of $1.28 billion indicates a decline of 27.4% from the prior-year quarter’s tally.

Hanesbrands Inc. Price and EPS Surprise

Hanesbrands Inc. price-eps-surprise | Hanesbrands Inc. Quote

Key Factors to Note

Due to the coronavirus outbreak, Hanesbrands had temporarily closed round 1,200 stores across the United States, Europe and Australia. COVID-19 induced store closures are likely to have marred the company’s performance in the second quarter. Apart from this, Hanesbrands has been battling soft sales in the Innerwear segment for quite some time. Moreover, risks of adverse foreign currency movements cannot be ignored.

Nevertheless, the company has been undertaking several measures to stay afloat amid the coronavirus outbreak. In this regard, Hanesbrands is producing cloth face coverings and medical gowns for the U.S. government amid the pandemic. Further, the company has been gaining from a solid online business. Also, its cost-saving efforts amid COVID-19 crisis are likely to have contributed to performance in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hanesbrands carries a Zacks Rank #3 and an Earnings ESP of +120.00%.

Other Stocks With Favorable Combination

Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.

Skechers SKX currently has an Earnings ESP of +18.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comcast Corporation CMCSA has an Earnings ESP of +8.33% and a Zacks Rank #3.

Spectrum Brands SPB currently has an Earnings ESP of +4.85% and a Zacks Rank of 3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.