NEW YORK (TheStreet) -- Hanesbrands (HBI) - Get Report shares are up 0.41% to $33.88 in trading on Thursday ahead of the release of the apparel manufacturer's second quarter financial results after the closing bell today.
The Winston Salem, NC-based company is expected to report second quarter earnings of 50 cents per share on revenue of $1.6 billion.
Those totals are increases from the 43 cents per share and $1.3 billion the company generated in the year ago period.
Today's release will feature the first full quarter of financial results since the company's purchase of collegiate logo apparel seller, Knights Apparel.
Hanesbrands purchased Knights Apparel for $200 million in February and completed the transaction in April.
"This is an exciting acquisition opportunity to leverage our existing Gear for Sports licensed collegiate apparel business, our expertise and size in the mass retail channel, and our low-cost global supply chain," CEO Richard Noll said at the time.
TheStreet Ratings team rates HANESBRANDS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HANESBRANDS INC (HBI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HBI's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HANESBRANDS INC has improved earnings per share by 26.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HANESBRANDS INC increased its bottom line by earning $0.99 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $0.99).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 26.6% when compared to the same quarter one year prior, rising from $41.56 million to $52.64 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, HANESBRANDS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 40.11% is the gross profit margin for HANESBRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.35% trails the industry average.
- You can view the full analysis from the report here: HBI Ratings Report