HanesBrands Climbs on Higher Q2 Profit

HanesBrands (NYSE: HBI) released its fiscal second-quarter financial results after the closing bell on Tuesday. The company reported earnings per share that came in ahead of Wall Street estimates, but revenue missed expectations. The company also updated its full-year guidance. In late trading, the stock was last up around 3 percent to $61.10. Management Commentary “We achieved record profit margins and EPS in the second quarter with each business segment achieving improved profitability,” Hanes Chairman and CEO Richard A. Noll said. “Our Innovate-to-Elevate platforms continue to excel and are quickly delivering results for us and our retail partners. We are on solid footing to continue to deliver value for consumers, retailers and investors. We have moved into the low end of our target range for sustained operating profitability sooner than anticipated, and our cash flow and solid balance sheet have allowed us to begin paying quarterly dividends and agree to acquire Maidenform Brands.” Q2 Financial Results HanesBrands reported net income for the fiscal second-quarter of $121.59 million or $1.19 per share, compared to $1.23 million or $0.01 per share, in last year's corresponding period. This easily topped Wall Street consensus EPS estimates of $0.94. Net sales in the quarter were $1.20 billion from $1.18 billion last year. This missed analysts' consensus revenue estimates of $1.21 billion by a narrow margin. Updated Full-Year Guidance HanesBrands now expects earnings per share for the full-year of $3.50 to $3.65 on revenue of $4.55 billion. Previously, the company had guided for EPS of $3.25 to $3.40 on revenue of approximately $4.6 billion. Currently, analysts anticipate that Hanes will report EPS of $3.46 on revenue of $4.59 billion for the full-year.