Why HanesBrands Stock Fell 15% at the Open Today
Shares of HanesBrands (NYSE: HBI), which makes clothing and undergarments, sold off sharply at the open on Tuesday. At one point in the first half-hour of trading, the stock was down by as much as 15%. Although an early decline in the broader market didn't help any, the real reason for the dour mood around this company in particular was its first-quarter earnings release. Oddly enough, it wasn't a bad report.
HanesBrands reported top-line sales of $1.51 billion, up 25% year over year. Wall Street was expecting sales to come in at $1.5 billion, so that was a slight beat. On the bottom line, adjusted earnings were $0.39 per share in Q1, up from $0.07 per share in the prior-year period. Analysts had been forecasting $0.26 per share. Investors normally look upon this type of outperformance favorably, but on Tuesday, they did not reward the stock. As of 10:55 a.m. EDT, it was still down by more than 14%.
Image source: Getty Images.
Source Fool.com
