Wednesday, March 7, 2012

Gildan Activewear Hits Estimates in Solid Quarter

Gildan Activewear (NYSE: GIL  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q1), Gildan Activewear met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Gildan Activewear logged revenue of $303.8 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $302.1 million. GAAP sales were 8.3% lower than the prior-year quarter's $331.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.38. The 13 earnings estimates compiled by S&P Capital IQ averaged -$0.38 per share. GAAP EPS were -$0.38 for Q1 against $0.29 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 2.1%, 2,260 basis points worse than the prior-year quarter. Operating margin was -14.6%, 2,670 basis points worse than the prior-year quarter. Net margin was -15.2%, 2,600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $426.6 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $1.94 billion. ! The aver age EPS estimate is $1.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 246 members out of 258 rating the stock outperform, and 12 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Gildan Activewear a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gildan Activewear is outperform, with an average price target of $22.51.

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1 comment:

  1. 4206$million dollars revenue on next quarter for Gildan Activewear seems to acknowledge that it will be the next big brands of 2012

    ReplyDelete