Hanesbrands Inc. (HBI) Shares Down Nearly 15% on Disappointing Quarterly Report and Sales Guidance

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Hanesbrands Inc. (NYSE:HBI) Stock is trading down significantly this morning after the company released their fourth quarter numbers and forward-looking guidance for FY2016. Revenue for the quarter came in at just $1.41 billion which equates to just $0.44 per share. This fell well short of Wall Street’s expectations of $0.46 per share on $1.53 billion in revenue. Additionally, the company said they are expecting 2016 earnings to come in between $1.85 to $1.91 per share on revenue of $5.9 billion. In comparisson, analysts were expecting $1.90 per share on $6.03 billion.

The stock is down 14.60% or $4.29 following the news, hitting $25.1 per share. About 6.85 million shares traded hands or 98.55% up from the average. HBI has declined 13.58% since July 1, 2015 and is downtrending. It has underperformed the S&P500 by 6.29%.

From a total of 6 analysts covering Hanesbrands (NYSE:HBI) stock, 5 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 83% of the ratings are positive. The highest target price is $42 while the lowest target price is $30. The mean of all analyst targets is $36.50 which is 45.42% above today’s ($25.1) stock price. Hanesbrands was the topic of 10 analyst reports since September 17, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on January 11 to a “Buy” rating. Wells Fargo reinitiated HBI stock in a recent report from October 22 with a “Outperform” rating.

The institutional sentiment decreased to 0.73 in Q2 2015. It’s down 0.27, from 1 in 2015Q2. The ratio fall, as 74 funds sold all their Hanesbrands Inc. shares they owned while 208 reduced their positions. 40 funds bought stakes while 165 increased their total positions. Institutions now own 350.13 million shares which is 0.02% less than the previous share count of 350.21 million in 2015Q2.

Chieftain Capital Management Inc. holds 13.45% of its total portfolio in Hanesbrands Inc., equating to 9.20 million shares. Newbrook Capital Advisors Lp owns 1.49 million shares representing 5.92% of their total US portfolio. Moreover, Hamilton Point Investment Advisors Llc has 3.68% of their total portfolio invested in the company, equating to 162,469 shares. The Florida-based Suncoast Equity Management has a total of 3.62% of their portfolio invested in the stock. Southernsun Asset Management Llc, a Tennessee-based fund reported 5.63 million shares owned.

Since March 2, 2015, the stock had 0 buys, and 2 sales for a total of $5.36 million in net activity. Marsh John T. sold 11,523 shares worth $346,036. Upchurch W Howard Jr sold 166,906 shares worth $5.02M. Johnson Joia M sold 15,000 shares worth $499,979. Evans Gerald sold 92,145 shares worth $2.95M. The insider Johnson James C sold 17,000 shares worth $525,470.

Hanesbrands Inc. is a manufacturer and marketer of apparel. The company has a market cap of $10.96 billion. The Firm operates through four divisions: Innerwear, Activewear, Direct to Consumer and International. It has 25.52 P/E ratio. The Company’s innerwear and activewear apparel brands include Hanes, Champion, Bali, Playtex, Maidenform, JMS/Just My Size, L’eggs, Flexees, barely there, Wonderbra, Gear for Sports and Lilyette.