Hanesbrands (NYSE:HBI) Q4 Earnings: Revenue Miss, Profit Beat

Hanesbrands (NYSE:HBI) released its Q4 CY2024 results, reporting a revenue increase of 1.1% year-over-year to $888.5 million, falling short of analyst estimates of $899.4 million. However, the company exceeded profit expectations with a non-GAAP EPS of $0.17 per share, outperforming analyst estimates by 19.5%.

Key Financial Metrics:

* Revenue: $888.5 million (1.1% YoY growth, 1.2% miss)
* Adjusted EPS: $0.17 (19.5% beat)
* Operating Margin: 13.5% (up from 11.1% in Q4 CY2023)
* Free Cash Flow Margin: 6.9% (down from 30.3% in Q4 CY2023)
* Market Capitalization: $2.70 billion

Revenue Outlook:

Management provided revenue guidance for FY2025, forecasting $3.50 billion at the midpoint, 3.8% below analyst estimates and implying -2.9% growth from FY2024.

EPS Outlook:

Adjusted EPS guidance for FY2025 was $0.53 at the midpoint, slightly above analyst estimates.

Company Overview:

Hanesbrands is a leading apparel and accessories company known for its basic innerwear and activewear products.

Sales Growth Analysis:

Over the last five years, Hanesbrands has experienced a 9.7% annual sales decline, indicating poor demand. However, in the last two years, the company's revenue declines have slowed to 5%, suggesting some improvement.

Constant Currency Revenue:

Hanesbrands' constant currency revenue has declined by 6.1% over the last two years, indicating the impact of currency movements on its results.

Cash Flow:

Hanesbrands generates decent free cash flow, with a margin of 10.1% over the last two years. In Q4, free cash flow declined to $61.72 million, a decrease from the same quarter last year.

Key Takeaways:

* Revenue missed estimates but EPS beat.
* Full-year revenue guidance fell short of expectations.
* Cash flow performance weakened in Q4.

Stock Performance:

Following the earnings report, Hanesbrands' stock initially dropped 3.5% to $7.40.

Conclusion:

Hanesbrands' Q4 results were mixed, with a revenue miss and a profit beat. The company's full-year revenue guidance and cash flow decline raise concerns, but its EPS guidance remains positive. Investors seeking a deeper understanding of Hanesbrands' business quality and valuation should refer to StockStory's full research report available for free.