-=Gildan Activewear (GIL) reported earnings on Thur 2 Nov 2017 (b/o)

Gildan Activewear beats by $0.02, misses on revs; guides FY17 EPS above consensus 

• Reports Q3 (Sep) earnings of $0.53 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.51; revenues rose 0.2% year/year to $716.4 mln vs the $748.86 mln Capital IQ Consensus.
• Co issues upside guidance for FY17, sees EPS of $1.70-1.72 vs. $1.69 Capital IQ Consensus Estimate.
  • Previous guidance was for diluted EPS to be at the high end of $1.60-$1.70
• Consolidated gross margin in the third quarter came in at a strong 31.0%, reflecting a 60 basis point increase over the same period last year.
• Outlook: "After reflecting third quarter earnings per share results and more tempered sales expectations for Branded Apparel in the current retail environment, the Company updated its guidance for the full year. Consolidated net sales growth for the full year is now projected to be in the mid to high single digit range compared to the Company's previous estimate of high single digit net sales growth. The Company continues to expect strong full year Printwear net sales growth in the high single digit range, while it is now projecting Branded Apparel net sales growth in the low single digit range versus its previous projection of high single digit growth, given current retail market conditions."
• The Company also updated its expectation for adjusted EBITDA for 2017 to be in the range of $580 -$590 million, up from its prior estimate of adjusted EBITDA at the high end of the $555-$585 million guidance range. Full year capital expenditures continue to be projected to be ~$100 million.
• Finally, as a result of stronger than previously anticipated profitability and working capital improvements, the Company is now projecting free cash flow in excess of $450 million for the year compared to its previous estimate of in excess of $425 million.