NEW YORK (TheStreet) -- Shares of Hanesbrands (HBI) - Get Report were surging 9.08% to $25.96 on heavy trading volume mid-Friday afternoon after the clothing company gave positive revenue guidance for the 2016 fourth quarter late yesterday.
Hanesbrands anticipates fourth-quarter revenue of $1.70 billion to $1.73 billion, topping Wall Street's view of $1.69 billion.
The company expects adjusted earnings per share of 57 cents to 60 cents for the quarter, while analysts are looking for 59 cents per share.
For fiscal 2016, the Winston Salem, NC-based company projects adjusted earnings per share of $1.89 to $1.92 vs. its prior outlook of $1.89 to $1.95 per share. Hanesbrands anticipates full-year revenue of $6.15 billion to $6.18 billion, narrower that its previous guidance of $6.15 billion to $6.25 billion.
Wall Street is modeling earnings of $1.92 per share on revenue of $6.15 billion for the year.
For the third quarter, adjusted earnings of 56 cents per share met analysts' estimates. Revenue of $1.76 billion fell short of Wall Street's expectations of $1.77 billion.
Credit Suisse said today that the company has developed a strategy "that can sustain double-digit earnings growth while generating exceptional amounts of cash even as sales growth in the mass channel business becomes more difficult."
The firm added that this makes Hanesbrands one of the "few strong buy ideas in [the firm's] universe."
The company's core innerwear business is stabilizing, Credit Suisse noted, and the firm estimates that this business can grow 1% to 3% year-to-year over the next few quarters.
Credit Suisse has an "outperform" rating and $37 price target on Hanesbrands shares.
More than 11.57 million shares of the company have traded hands so far today vs. the 30-day average of 3.75 million.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, good cash flow from operations 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.
You can view the full analysis from the report here: HBI