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Did Hanesbrands Meet 3Q16 Expectations?

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Series snapshot

Hanesbrands (HBI) reported its results for 3Q16 on Thursday, October 27, 2016. The results relate to the three-month period ending October 1, 2016. The company reported revenue and earnings that were in-line with Wall Street analyst estimates. Its diluted earnings per share rose 12% YoY (year-over-year) to 56 cents. Revenue stood at $1.8 billion, up 10.7% YoY.

The company’s stock jumped more than 8% after its earnings release.

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Valuations overview

Hanesbrands is currently trading at a one-year forward price-to-earnings ratio of 12.1x, operating close to the lower end of its 52-week PE (price-to-earnings) range of 11.5x–16.5x. The company is trading at a discount to most branded apparel peers. PVH (PVH), VF (VFC), and Ralph Lauren (RL) are currently valued at 15x, 16.4x, and 18.2x, respectively, on next-12-month earnings.

About Hanesbrands

HBI is a global marketer of leading basic apparel brands such as Hanes, Champion, Playtex, Bali, Maidenform, JMS/Just My Size, Wonderbra, and Gear for Sports. The company sells bras, women’s underwear, shapewear, sheer hosiery, men’s underwear, children’s underwear, socks, t-shirts, sweatshirts, fleece, and other activewear throughout the world.

HBI is a member of the S&P 500 Index and is ranked number 490 on the Fortune 500 list. The iShares Morningstar Mid-Cap Growth Index Fund (JKH) invests 0.66% of its holdings in Hanesbrands.

What’s in this series?

In this series, we’ll discuss Hanesbrands’ financial performance during the quarter by evaluating its key revenue drivers and profitability. We’ll also talk about Wall Street’s view on HBI, the company’s revised guidance, and its current valuation.

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