HanesBrands Stock Rises 6 Percent on Higher 2017 Revenue Projection

8/2/17

By Chris Roush, NC BIZ News

Clothing manufacturer HanesBrands Inc. saw its shares rise by more than 6 percent in after-hours trading after the company projected 2017 revenue higher than analyst expectations.

The Winston-Salem company said it now believes it will report revenue between $6.45 billion and $6.55 billion, which is above the current Wall Street expectation of $6.44 billion, according to a filing Tuesday with the Securities and Exchange Commission.

The maker of Hanes and Champion clothing also said that it will report earning per share between $1.93 and $2.03 for the year, in line with current projections of $1.97 per share.

“We continued our strong start to 2017 in the second quarter, consistent with our guidance,” said Chief Executive Officer Gerald W. Evans Jr. in a statement. “Organic sales trends continued to improve sequentially, acquisitions are contributing value as expected, and our cash-flow efforts, including disciplined inventory management, are generating strong results.”

HanesBrands shares rose to $24.50, up $1.46, or 6.34 percent, in after-market trading on Tuesday.

For the third quarter, the company said it expects to report revenue of $1.8 billion and earnings between 59 cents per share and 61 cents per share. Both are in line with current analyst estimates.

During the second quarter, the company reported revenue of $1.65 billion, up 11.8 percent from revenue of $1.47 billion in the second quarter of 2016.

Net income was $172.5 million, or 47 cents per share, up 34.6 percent from net income of $128.1 million, or 34 cents per share.

The second-quarter results were in line with Wall Street expectations.