Benzinga | Feb 8, 2021 10:26AM EST

Earnings Outlook for Hanesbrands

On Tuesday, February 09, Hanesbrands (NYSE:HBI) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Hanesbrands reporting earnings of $0.29 per share on sales of $1.64 billion. Hanesbrands reported a profit of $0.51 per share when it published results during the same quarter last year. Sales in that period totaled $1.75 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 43.14% decline in the company's earnings. Revenue would have fallen 6.34% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.39 -0.07 0.14 0.51EPS Actual 0.42 0.60 0.05 0.51Revenue Estimate 1.67 B 1.17 B 1.34 B 1.75 BRevenue Actual 1.81 B 1.74 B 1.32 B 1.75 B

Stock Performance

Shares of Hanesbrands were trading at $15.86 as of February 05. Over the last 52-week period, shares are up 11.25%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hanesbrands is scheduled to hold the call at 08:30:00 ET and can be accessed here.