Gildan Activewear beats by $0.03, beats on revs; guides FY18 EPS in-line
- Reports Q2 (Jun) earnings of $0.52 per share, excluding non-recurring items, $0.03 better thanthe Capital IQ Consensus of $0.49; revenues rose 6.8% year/year to $764.2 mln vs the $728.72 mln Capital IQ Consensus.
- The sales increase in activewear was driven by strong shipments of imprintable products, as well as increased shipments to global lifestyle brand customers and retailers.
- Gross margin in the second quarter of 2018 totaled 28.3%, reflecting a 150 basis point decrease over the same period last year. The decline was mainly due to higher raw material and other input costs and additional manufacturing expenses resulting from disruptions within our supply chain in Central America.
- Co issues in-line guidance for FY18, sees EPS of $1.85-1.90, excluding non-recurring items, vs. $1.86 Capital IQ Consensus Estimate.
- Net sales growth is now projected to be in the mid-single-digit range, the upper end of the Company's previous range of low to mid-single digit growth. The Company expects adjusted EBITDA to be in the range of $605 to $620 million compared to $595 to $620 million previously, and free cash flow for 2018 is now expected to be in excess of $425 million for the year, higher than its previous estimate of in excess of $400 million.
- "For the balance of 2018, the Company is projecting adjusted diluted EPS growth in the high-single-digit to low-double-digit range in the third quarter, and strong double-digit adjusted diluted EPS growth in the fourth quarter."
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