HanesBrands sees Q3 results above market

WASHINGTON - While reporting weak second-quarter profit and sales, apparel brands company HanesBrands Inc. (HBI) on Thursday issued third-quarter and fourth quarter earnings and sales forecast. Further, the company raised fiscal 2021 earnings and sales view.

In pre-market activity on NYSE, HanesBrands shares were gaining around 3.6 percent to trade at 19.01 dollars.

For the third quarter, the company currently expects earnings per share from continuing operations to range from 0.42 to 0.45 dollars, and adjusted earnings per share from continuing operations to range from 0.45 to 0.48 dollars.

Net sales from continuing operations are expected to be around 1.78 billion to 1.81 billion dollars, a growth of 6 percent growth over prior year at the midpoint.

On average, analysts polled by Thomson Reuters expected earnings of 0.41 dollars per share on sales of 1.61 billion dollars. Analysts' estimates typically exclude special

Excluding PPE, net sales at the midpoint of the guidance range are expected to increase 19 percent over the prior year period. As compared to rebased third-quarter 2019, net sales at the midpoint are expected to increase 11 percent.

Further, for the fourth quarter, the company expects earnings per share from continuing operations to range from 0.29 to 0.34 dollars, and adjusted earnings per share from continuing operations to range from 0.37 to 0.42 dollars.

Net sales from continuing operations of around 1.71 billion to 1.78 billion dollars, a growth of around 3 percent from last year.

Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 8 percent over the prior year period. As compared to rebased fourth-quarter 2019, net sales at the midpoint are expected to increase 15 percent.

For fiscal-year 2021, the company currently expects earnings per share from continuing operations to range from approximately 1.50 to 1.58 dollars. Adjusted earnings per share from continuing operations is projected to range from approximately 1.68 to 1.76 dollars, higher than previous outlook of 1.51 to 1.59 dollars.

Net sales from continuing operations for the year would total approximately 6.75 billion to 6.85 billion dollars, which is 550 million dollars above its prior range of 6.2 billion to 6.3 billion dollars.

Analysts expect earnings of 1.58 dollars per share on sales of 6.31 billion dollars for the year.'.

At the midpoint, net sales guidance implies approximately 11 percent growth over prior year and 12 percent growth adjusted for the 53rd week in 2020.

Adjusting for PPE and the 53rd week in 2020, net sales at the midpoint of the guidance range are expected to increase 29 percent over the prior year period. As compared to rebased 2019, net sales at the midpoint are expected to increase 13 percent.