Hanesbrands Gears Up for Q4 Earnings: What to Expect From the Stock?

Hanesbrands (HBI Quick QuoteHBI – Free Report) is likely to report fourth-quarter 2024 earnings on Feb. 13. The Zacks Consensus Estimate for quarterly revenues is pegged at $899.3 million. The consensus mark for earnings has remained unchanged in the past 30 days and is pegged at 14 cents per share. 

HBI delivered a trailing four-quarter earnings surprise of 21.6%, on average. In the last reported quarter, the company reported an earnings surprise of 36.4%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Things to Consider Ahead of HBI’s Upcoming Results

Hanesbrands’ consumer-centric strategy has been a key driver of its performance. It has helped the company gain market share through product innovation aimed at younger demographics and expanding permanent retail space. These efforts are expected to have contributed to positive fourth-quarter results. However, currency fluctuations remain a challenge, which is likely to have served as a headwind to the expected $4 million of net sales in the to-be-reported quarter.

For the fourth quarter of 2024, Hanesbrands expects net sales from continuing operations of approximately $900 million, indicating a nearly 2% year-over-year increase on a reported basis and an approximately 3% rise on an organic constant-currency basis. 

Hanesbrands continues to leverage its core financial strengths. The company has maintained healthy margins and strong cash generation, supported by brand-building initiatives, data-driven decision-making, inventory optimization and SKU discipline. These strengths are likely to have contributed to margin expansion and overall profitability.

Management has anticipated fourth-quarter operating profit growth of 17% year over year to $115 million. It expects operating margin expansion of 160 basis points to 12.8%. Earnings per share are expected to reach 14 cents, implying the company’s commitment to operational efficiencies and financial stability.

Nevertheless, Hanesbrands has been navigating a challenging macroeconomic environment, characterized by inflation, market uncertainties and softer consumer demand. These factors have posed obstacles to growth and might have put some pressure on the company’s performance.

What Does the Zacks Model Unveil for HBI?

Our proven model does not conclusively predict an earnings beat for Hanesbrands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Hanesbrands currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies that according to our model have the right combination of elements to beat on earnings this reporting cycle.

Urban Outfitters (URBN Quick QuoteURBN – Free Report) has an Earnings ESP of +2.99% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

URBN’s top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.63 billion, which indicates a 9.4% increase from the figure reported in the year-ago quarter. 

The company is expected to register a rise in the bottom line. The consensus estimate for Urban Outfitters’ fourth-quarter earnings is pegged at 89 cents a share, up 29% from the year-ago quarter. URBN delivered a trailing four-quarter earnings surprise of 22.8%, on average.

Abercrombie & Fitch (ANF Quick QuoteANF – Free Report) has an Earnings ESP of +0.48% and carries a Zacks Rank of 3 at present. ANF is likely to register top-line growth when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.56 billion, which indicates 7.7% growth from the figure reported in the year-ago quarter. 

The consensus estimate for Abercrombie & Fitch’s fourth-quarter earnings is pegged at $3.51 per share, which calls for 18.2% growth from the figure reported in the year-ago quarter. ANF delivered an earnings beat of 14.8%, on average, in the trailing four quarters.

Costco (COST Quick QuoteCOST – Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. COST’s top line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $63.2 billion, which indicates an 8.2% jump from the figure reported in the year-ago quarter. 

The company is expected to register an increase in the bottom line. The consensus estimate for Costco’s second-quarter earnings is pegged at $4.09 per share, up 10.2% from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 2%, on average.