Gildan Activewear Earnings Preview: GIL Stock Plunges 25% on Guidance Update

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A Gildan Activewear (NYSE:GIL) earnings preview for the apparel company’s third quarter of 2019 is hitting GIL stock hard on Friday. This is due to the company saying it expects adjusted diluted EPS of roughly 53 cents for the quarter. That would have it missing Wall Street’s estimate of 57 cents. It is also planning for revenue of about $740 million, which will easily come in below analysts’ estimate of $790.69 million for the period.

Gildan Activewear Earnings Preview: GIL Stock Plunges 25% on Guidance Update

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Let’s look at what else this will mean for the upcoming Gildan Activewear earnings report.

  • This will have the company’s adjusted diluted per-share earnings falling 7% YoY from 57 cents.
  • It will also see GIL revenue drop by 2% from the same time last year.
  • Gildan Activewear notes that this change is due to significantly weaker demand for imprintables in North America than what it was expecting.
  • It also notes that it is seeing continuing softness in the international imprintable market.

The poor preliminary results for the upcoming Gildan Activewear earnings report also includes another blow to GIL stock. The company takes the time to outline revised guidance that is lower than what it was previously.

According to the Gildan Activewear earnings update, the company is now expecting adjusted diluted earnings per share for the full year of 2019 to range from $1.65 to $1.70. This will have it missing Wall Street’s estimate of $1.94 for the year. The previous GIL guidance had this coming in between $1.95 and $2.00.

GIL stock was down 25.52% as of Friday afternoon, which more than erases any gains made since the start of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/10/gildan-activewear-earnings-update-hammers-gil-stock/.

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