American multinational clothing company Hanesbrands Inc. (NYSE: HBI) is struggling to keep up the pace. The negative earnings for the past couple of quarters made the HBI stock suffer a great deal. Even in the longer timeframe, HBI stock prices disappointed investors.
Should holding a stock for about half a decade be considered as a long-term holding, HBI stock price loses up to 80% of its value in the timeframe. For the year 2022, Hanesbrands stock traded in a downtrend and shredded over 60% of its value within a year.
Earnings of Hanesbrands in the past quarters tell the story behind the company’s performance and its efficacies on HBI stock price. For Q1 2023, the clothing company reported revenue of $1.39 billion, up by 1.95% from the estimated revenue of $1.36 billion. However, the revenue was short by over 11% in comparison to the previous year.
The earnings per share (EPS) is another crucial factor that depicts the investor’s perception towards the company. In a broader spectrum, Hanesbrands disappointed its investors, in terms of EPS with the consistent drops. This resulted in loss and eroding of HBI stock price.
Though the recently reported EPS of -$0.06 was better than the estimate of -$0.069, but disappointing in the yearly time frame. The profit margin of Hanesbrands during first quarter of this year dropped, reported -2.48%, down by a significant 132.9% from the past year.
HBI Stock Price Movement
Since the company consistently reported losses for past quarters, HBI stock had to suffer. Should the upcoming earnings for the second quarter of 2023 be positive, an upside could be expected, and that too, nothing insignificant.
HBI stock price has been in downtrend making lower low swings. Currently, stock price taking sideways movement in consolidation. The stock price is moving around multi-year lows.
At present, HBI stock is trading at $4.80 after adding 5.96% in the last 24 hours. An up move towards $5.35 is needed in order to secure enough boost to test strong resistance at $7.4. The resistance price level is likely to activate the anticipated bullish trend confidence in the Hanesbrands stock price.
Also, given consistent selling, HBI stock entered into an oversold zone and a potential short squeeze condition is in the making.
Price level at $3.8 is acting as a crucial support for the clothing brand company stock. Until any significant movement, HBI stock price will likely move within the price range of $3.8 to $5.3.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/12/hbi-stock-price-at-yearly-lows-hanesbrands-inc-negative-earnings/