Hanesbrands Reaches 52-Week High - Analyst Blog
10 4월 2013 - 2:00AM
Zacks
Shares of the apparel chain Hanesbrands Inc.
(HBI) reached 52-week high of $47.71 on Monday Apr 8, following the
company’s announcement to initiate a quarterly dividend of 26 cents
from Jun 3 that implies a yield of 58.6%.
The closing price of the textile retailer on Apr 8 was $47.65,
representing a solid 1-year return of about 69.3% and year-to-date
return of about 33.9%. Average volume of shares traded over the
last three months stands at approximately 1165K.
Growth Drivers
Hanesbrands has a solid free cash flow. The company is committed
to use the excess cash to return value to its shareholders.
Hanesbrands intends to use almost 20% to 25% of its free cash flow
to pay dividend.
Winston-Salem, NC-based Hanesbrands is geared to maximize
returns to shareholders. Apart from paying in the form of
dividends, the company also intends to repurchase shares, although
it is yet to formulate its share buyback strategy.
In the recently concluded 2012-fourth quarter, Hanesbrands
delivered earnings of $1.07 per share, which more than doubled from
the prior year quarter and exceeded the Zacks Consensus Estimate by
7%.
Hanesbrands’ focus on the ‘Innovate to Elevate’ strategy is
helping the company boost its earnings. The strategy focuses on
value added, higher-priced and higher margin items that can be
supplied at lower cost. Revenue growth was fuelled by the
undergarment categories like Tagless, Comfort Blend and Smart Sizes
which consistently occupy major share in the market.
The company also hinted that some bolt-on-acquisitions are also
in the way, as it wants to deploy free cash in some strategic
buyout in the near future.
For the first quarter 2013, Hanesbrands expects sales to be $945
million. Operating profits are expected between $82 million and $85
million for the quarter. Earnings are expected to lie within the
range of 48 cents to 51 cents per share.
For full year 2013, the company reaffirmed its sales guidance of
$4.6 billion. It expects operating profits between $500 million to
$550 million for the year. Earnings are expected to lie within the
band of $3.25 to $3.40 per share.
Hanesbrands engages in marketing innerwear, outerwear and
hosiery apparel and carries a Zacks Rank #2 (Buy). Other stocks in
the same industry that are worth a look include Michael
Kors (KORS), Joe’s Jeans Inc. (JOEZ) and
Ralph Lauren Corp (RL). All of them carry a Zacks
Rank #2 (Buy).
HANESBRANDS INC (HBI): Free Stock Analysis Report
JOES JEANS INC (JOEZ): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis Report
RALPH LAUREN CP (RL): Free Stock Analysis Report
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