Gildan Activewear (GIL) to Post Q4 Earnings: What's in the Cards? (2024)

Zacks Equity Research

·4 min read

Gildan Activewear Inc. GIL is likely to have registered top and bottom-line growth when it reports fourth-quarter 2023 results on Feb 21, before market open. The Zacks Consensus Estimate for revenues is pegged at $749.4 million, indicating a rise of 4.1% from the year-ago reported figure.

The consensus estimate for fourth-quarter earnings is pegged at 72 cents per share, suggesting a 10.8% increase from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.

Gildan Activewear has a negative trailing four-quarter earnings surprise of 2.2%, on average. In the last reported quarter, the company delivered an earnings surprise of 1.4%.

Key Factors to Note

Gildan Activewear has been gaining market share, driven by its strong brand, product innovation and customer service. It has been saving costs by optimizing its manufacturing processes. The company has a relatively short manufacturing cycle time and can adjust its manufacturing to incorporate demand changes. This can help the company avoid excess inventory and reduce the risk of stockouts, which can improve customer satisfaction and reduce costs. Optimizing its manufacturing processes and implementing cost-reduction initiatives are expected to have been reflected in the company’s profitability in the to-be-reported quarter.

On the last reported quarter’s earnings call, management projected revenues to grow in the quarter under review.

On the flip side, Gildan Activewear has been witnessing headwinds, driven by a tough macro environment, which has been shifting customers’ focus on lower-priced products. The company has been witnessing softer demand trends for a while now owing to a challenging macro backdrop.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear (GIL) to Post Q4 Earnings: What's in the Cards? (1)

Gildan Activewear, Inc. price-eps-surprise | Gildan Activewear, Inc. Quote

Gildan Activewear has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), at present. You can uncover the best stocks to before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat.

lululemon athletica LULU currently has an Earnings ESP of +0.29% and a Zacks Rank of 2. LULU is likely to have registered top and bottom-line growth in its fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.2 billion, suggesting 15% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LULU’s fourth-quarter earnings is pegged at $4.99 a share, up 13.4% from the year-ago quarter. The consensus mark has risen a penny in the past seven days.

NIKE NKE currently has an Earnings ESP of +5.39% and a Zacks Rank of 3. NKE is likely to have registered top and bottom-line decline in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.4 billion, suggesting a 0.3% drop from the figure reported in the year-ago quarter.

The consensus estimate for NIKE’s third-quarter earnings is pegged at 72 cents per share, suggesting an 8.9% decline from the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.

Planet Fitness PLNT currently has an Earnings ESP of +2.04% and a Zacks Rank of 3. PLNT is likely to have registered top and bottom-line growth in its fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $283.6 million, suggesting 0.8% growth from the figure reported in the year-ago quarter.

The consensus estimate for Planet Fitness’ fourth-quarter earnings is pegged at 58 cents per share, suggesting 9.4% growth from the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.

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Gildan Activewear (GIL) to Post Q4 Earnings: What's in the Cards? (2024)

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