HanesBrands (HBI) has a market cap of $10.0 billion. It fell by 1.1% to close at $26.55 per share on July 26, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.71%, 3.6%, and -9.0%, respectively, on the same day. HBI is trading 1.2% above its 20-day moving average, 0.13% below its 50-day moving average, and 6.1% below its 200-day moving average.
Related ETF and peers
The iShares Morningstar Mid-Cap Growth Index ETF (JKH) invests 0.87% of its holdings in HanesBrands. The ETF tracks a market-cap-weighted index of mid-cap companies selected by Morningstar based on their growth characteristics. The YTD price movement of JKH was 5.8% on July 26.
The market caps of HanesBrands’ competitors are as follows:
HanesBrands declares dividend
HanesBrands has declared a regular quarterly cash dividend of $0.11 per share on its common stock. The dividend will be paid on September 7, 2016, to shareholders of record at the close of business on August 16, 2016.
Performance in fiscal 1Q16
HanesBrands reported fiscal 1Q16 net sales of $1.22 billion, a rise of 0.84% over the net sales of $1.21 billion in fiscal 1Q15. The company’s cost of sales as a percentage of net sales and operating profit rose by 1.6% and 36.2%, respectively, between fiscals 1Q15 and 1Q16.
The company’s net income and EPS (earnings per share) rose to $80.3 million and $0.21, respectively, compared with $52.6 million and $0.13, respectively, in fiscal 1Q15. It reported adjusted EPS of $0.26, a rise of 18.2% from fiscal 1Q15.
HanesBrands’ cash and cash equivalents and inventories rose by 4.1% and 8.6%, respectively, between fiscals 4Q15 and 1Q16. Its current ratio and debt-to-equity ratio rose to 2.3x and 5.1x, respectively, in fiscal 1Q16, compared with 1.9x and 3.4x, respectively, in fiscal 4Q15.
Projections for 2016
The company revised its guidance for fiscal 2016. Its new projections are as follows:
- net sales of $6.2 billion–$6.3 billion
- EPS of $1.51–$1.57
- operating profit of $780 million–$815 million
- non-GAAP (generally accepted accounting principles) EPS of $1.89–$1.95
- non-GAAP operating profit of $940 million–$975 million
- net cash flows from operations of $750 million–$850 million
- capital expenditures of ~$75 million
- tax rate in the high single digits
- contributions of ~$800 million in net sales and ~$70 million in operating profit before synergies from the acquisitions of Champion Europe and Pacific Brands
This guidance reflects the contribution from the completed acquisition of Champion Europe and Pacific Brands Limited. In the next part of this series, we’ll look at Apple.