Gildan Activewear Inc. GIL is scheduled to release fourth-quarter 2024 results on Feb. 19, before market open. The Zacks Consensus Estimate for revenues is pegged at $793.5 million, indicating a rise of 1.4% from the prior-year figure.

The consensus estimate for earnings per share has been stable at 80 cents per share in the past 30 days. The estimate indicates an increase of 6.7% from the year-ago period’s number. GIL has a trailing four-quarter earnings surprise of 5.4%, on average.

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Gildan Activewear, Inc. Price and Consensus

Gildan Activewear, Inc. price-consensus-chart | Gildan Activewear, Inc. Quote

Key Factors to Note Ahead of GIL’s Results

Gildan’s upcoming quarterly results are expected to reflect gains from its Sustainable Growth Strategy, which emphasizes capacity expansion, innovation and ESG initiatives as key drivers of its competitive strength and profitability.

The ramp-up of the new manufacturing complex in Bangladesh remains on track, projected to reach an exit capacity rate of 75% by year end, enhancing supply chain efficiencies and supporting long-term growth in ring-spun products. Additionally, the ongoing modernization of yarn operations in the United States continues to drive operational improvements. Gains from these initiatives are likely to benefit the to-be-reported quarter.

Gildan is expected to benefit from lower raw material and manufacturing input costs, which should bolster margins. The Activewear segment continues to gain momentum, fueled by market share expansion and strong demand for newly introduced soft cotton technology products. Also, increased international sales, particularly in Europe, are expected to contribute positively, driven by inventory replenishment and enhanced distribution capabilities. Moreover, positive consumer response to Gildan’s latest product innovations further strengthens its market position.

On its last earnings call, management refined its outlook, reflecting strong execution and financial resilience. The company now expects low-single-digit revenue growth. This accounts for the expiration of the Under Armour sock license agreement on March 31, 2024, which had a minimal impact on profitability. Excluding this, revenue growth is expected to be in the mid-single-digit range. Adjusted operating margin is projected to be slightly above 21%. POS (Point of Sale) trends are expected to improve through the final quarter, with growth across all channels.

Earnings Whispers for GIL

Our proven model does not conclusively predict an earnings beat for Gildan Activewear 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.

Gildan Activewear currently carries a Zacks Rank #2 and has 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.

GIL’s Price Performance & Valuation

GIL shares have exhibited an uptrend, increasing as much as 47.1% in the past year. The stock has outperformed the broader industry’s decline of 2.9%. Also, the stock has outpaced the Consumer Discretionary sector’s growth of 15.7% and the S&P 500 index’s growth of 22.6% in the same period.

GIL Stock's Past One Year Performance

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From the valuation standpoint, GIL offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 14.81x, below the five-year high of 15.82x and the industry’s average of 22.45x, the stock offers compelling value for investors seeking exposure to the sector.

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.

Accel Entertainment ACEL currently has an Earnings ESP of +26.83% and a Zacks Rank of 1. ACEL is likely to register top-line growth when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $308.9 million, indicating 4% growth from the figure in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for ACEL’s earnings is pegged at 21 cents a share, indicating a 19.2% drop from the year-ago quarter’s actual. ACEL has a trailing four-quarter earnings surprise of 26.1%, on average.

lululemon athletica LULU currently has an Earnings ESP of +0.42% and a Zacks Rank of 2. LULU 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 $3.6 billion, indicating 11.5% growth from the figure in the year-ago quarter.

The consensus estimate for LULU’s earnings is pegged at $5.83 a share, implying a 10.2% increase from the year-earlier quarter. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.

Hasbro HAS currently has an Earnings ESP of +9.20% and a Zacks Rank of 3. HAS is likely to register a decline in its top and bottom lines when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1 billion, indicating a 20.4% decrease from the figure in the year-ago quarter.
 
The consensus estimate for HAS’ earnings is pegged at 36 cents per share, implying a 5.3% drop from the year-ago quarter’s actual. HAS has a trailing four-quarter earnings surprise of 44%, on average.

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