This Zacks #1 Rank stock announced revenues of $326.8 million, up 33.5% over the second quarter of last year. It also reported adjusted earnings per share of $0.41, up from $0.06 in the year-ago quarter and 5 cents ahead of the Zacks Consensus Estimate.
Gildan has now beaten the Zacks Consensus in each of the last four quarters by an average of 13.4%.
The company credits its strong performance to market share gains, inventory re-stocking, a 3.4% increase in overall industry demand, and a more favorable product mix.
Management also boosted its outlook. Gildan now projects full-year sales of $1.3 billion, which is up from its prior guidance of U.S. $1.2 billion.
Business
Gildan is a vertically-integrated marketer and manufacturer of quality branded basic apparel. It is the leading supplier of activewear for the screenprint market in the U.S. and Canada. The company sells T-shirts, sport shirts and fleece in large quantities to wholesale distributors as undecorated "blanks," which are subsequently decorated by screenprinters with designs and logos.
Estimates
Analyst estimates were trending higher heading into yesterdays earnings report. In the last month, the Zacks Consensus for 2010 was up 4 cents, and the Zacks Consensus for 2011 was up 9 cents.
After yesterday's better-than-expected earning and management's bullish outlook, analyst estimates are surely moving higher.
The Chart
GIL shares have been on a tear. The stock is up about 125% in the last year, and it touched a new 52-week high on May 13. However, that move hasn't been straight up.
The stock has experienced four sell-offs in the last year: 14.7%, 23.0%, 13.7%, and 11.9%, but it was able to rebound and hit higher highs after each sell-off.
http://www.google.com/finance?q=NYSE:GIL
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