Hanesbrands HBI is likely to register year-over-year bottom-line growth when it reports third-quarter 2024 earnings on Nov. 7, before market open. The Zacks Consensus Estimate for earnings has declined a penny in the past 30 days to 11 cents per share, suggesting an increase of 10% from the prior-year reported figure.

The consensus estimate for quarterly revenues is pegged at $928.3 million, indicating a drop of 38.6% from the year-ago quarter’s reported figure.

HBI has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company posted an earnings surprise of 50%.

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Hanesbrands Inc. Price, Consensus and EPS Surprise

Hanesbrands Inc. price-consensus-eps-surprise-chart | Hanesbrands Inc. Quote

Key Factors to Influence HBI’s Q3 Results

Hanesbrands has been grappling with a challenging macroeconomic consumer landscape. Inflation, market uncertainties and a tough consumer demand landscape have been impediments. At its last earnings call, Hanesbrands stated that it expects the macro consumer landscape to remain difficult across its categories while anticipating improvements in year-over-year sales trends as it moves through 2024.

For the third quarter of 2024, net sales from continuing operations are expected to be $920-$950 billion, including anticipated headwinds of almost $17 million from the U.S. Hosiery divestiture and a currency headwind of nearly $4 million. The midpoint of the guidance suggests a nearly 3% year-over-year decline on a reported basis and an approximately 1% decline on an organic basis at cc.

On the flip side, Hanesbrands’ foundational financial model has consistently been robust, characterized by healthy margins and steady cash generation. HBI has been seeing benefits from brand building, data analytics, inventory management and SKU discipline. The company has also undergone a strategic transformation by divesting its Global Champion business and exiting the U.S. outlet store business. 

By exiting lower-margin businesses, the company has simplified its operations, positioning itself for more consistent growth and higher profit margins while boosting its cash generation capabilities. These upsides, along with a global consumer-centric approach, are likely to have contributed to the upcoming results.

What the Zacks Model Unveils for HBI

Our proven model doesn’t conclusively predict an earnings beat for Hanesbrands this time. 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 has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% at present. 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.

Under Armour UAA has an Earnings ESP of +10.53% and flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is anticipated to witness a top-line decline in its second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.38 billion, which indicates an 11.9% increase from the year-ago level. 

The company’s bottom line is also expected to have declined. The consensus estimate for Under Armour’s earnings is pegged at 19 cents per share, down 20.8% from the year-ago level. UAA has a trailing four-quarter earnings surprise of 64.2%, on average.

Stitch Fix SFIX currently has an Earnings ESP of +5.88% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at 13 cents, which implies a 40.9% increase from the year-ago level.

The company’s bottom line is expected to decline year over year. The consensus estimate for quarterly revenues is pegged at $306.6 million, which indicates a decrease of 15.9% from the prior-year level. SFIX has a trailing four-quarter earnings surprise of 20.3%, on average.

Best Buy BBY presently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company is slated to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.63 billion, which indicates a decline of 1.3% from the figure reported in the prior-year quarter.

The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.

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