HBI Earnings Prediction
The chart below shows how HBI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HBI sees a +8.30% change in stock price 10 days leading up to the earnings, and a -0.80% change 10 days following the report. On the earnings day itself, the stock moves by -5.71%. This data can give you a slight idea of what to expect for the next quarter's release.
HBI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
937.10M
-37.99%
-5.86%
Gross Margin
41.78%
17.82%
5.11%
Operating Margin
13.04%
37.84%
2.92%
Net Margin
3.46%
234.63%
-125.22%
EPS
0.08
172.73%
-109.41%
No Data Available
HBI Earnings Analysis
Hanesbrands, Inc. Corporation (HBI.N) Earnings Conference Call
Positive
Record Gross Margin Achievement: 1. Record Gross Margin: Hanesbrands achieved a record gross margin of 41.8% in Q3 2024, reflecting a 525 basis point increase year-over-year, driven by assortment management and cost savings initiatives.
Operating Profit Surge: 2. Significant Operating Profit Growth: The company reported a 46% increase in operating profit compared to the prior year, demonstrating effective cost management and operational efficiency.
EPS Turnaround Success: 3. Strong EPS Recovery: Earnings per share (EPS) rose to $0.15, a remarkable turnaround from a loss of $0.20 in the previous year, marking an 850% increase.
Strong Cash Flow Performance: 4. Robust Cash Flow Generation: Hanesbrands generated approximately $92 million in operating cash flow for the quarter, contributing to nearly $200 million year-to-date, showcasing strong financial health.
Debt Reduction Efforts: 5. Debt Reduction Progress: The company paid down $870 million of debt in October 2024, on track to meet its goal of $1 billion in debt reduction for the second half of the year, significantly lowering leverage ratios.
Negative
Net Sales Decline: 1. Declining Net Sales: Hanesbrands reported net sales of $937 million for Q3 2024, a decrease of 2.5% compared to the prior year, primarily impacted by the divestiture of the U.S. hosiery business and foreign exchange headwinds.
U.S. Sales Decline: 2. Weak U.S. Sales Performance: In the U.S. market, net sales decreased by 1% compared to last year, indicating challenges in maintaining growth despite strategic initiatives.
Inventory Decrease Analysis: 3. Inventory Reduction: The company reduced its inventory by 13% year-over-year in the quarter, which may signal potential supply chain issues or reduced demand from retail partners.
Leverage Ratio Concerns: 4. High Leverage Ratio: As of the end of Q3, the company's leverage ratio stood at 4.3 times net debt to adjusted EBITDA, which, while improved, remains high and indicates ongoing debt management challenges.
Profitability Challenges Ahead: 5. Operating Margin Pressure: Despite achieving a record gross margin of 41.8%, the guidance for Q4 suggests a potential decline in gross margin, indicating possible pressures on profitability moving forward.
HBI FAQs
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HBI Earning Call Sentiment
Hanesbrands Inc. (HBI) Q3 2024 Earnings Call Transcript
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00:00
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HBI.N
-0.32%Positive
The earnings call reveals strong financial metrics with significant EPS growth and improved margins, despite a slight decrease in net sales. The company is effectively managing debt, enhancing cash flow, and has raised guidance, indicating confidence in future performance. Despite some vague responses in the Q&A, the overall sentiment is positive with plans for increased shareholder returns and strategic cost management initiatives. Given the company's small-cap status, these factors are likely to result in a positive stock price movement (2% to 8%) over the next two weeks.
