Gildan Activewear's Q1 Earnings on the Horizon: Factors to Note

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Gildan Activewear's Q1 Earnings on the Horizon: Factors to Note

Gildan Activewear Inc. GIL is scheduled to report first-quarter 2026 results on April 30, before the opening bell, and is expected to have registered top-line growth. The Zacks Consensus Estimate for revenues is pegged at $1.13 billion, indicating an increase of 58.2% from the year-ago figure.

The consensus estimate for earnings is pegged at 34 cents per share, which indicates a decrease of more than 42% from the year-ago quarter’s actual. The consensus mark has remained unchanged over the past 30 days.

Gildan Activewear has a negative trailing four-quarter average earnings surprise of 5%. In the last reported quarter, the company missed earnings estimates by 26.7%.

Key Factors Likely to Impact GIL’s Q1 Results

Gildan Activewear’s quarterly results are expected to reflect gains from its Sustainable Growth Strategy, which focuses on expanding capacity, driving innovation and advancing ESG initiatives to strengthen competitiveness. The performance is likely to have been further supported by a robust business model and sturdy execution of its strategic priorities.  

The company continues to leverage its integrated model, which allows it to control manufacturing from raw materials to finished goods at a lower cost. GIL is focused on the optimization of manufacturing processes and the implementation of cost-reduction initiatives. Gildan Activewear is expanding its production footprint, which is expected to enhance flexibility, support future demand and generate additional cost efficiencies. It is simplifying operations by harmonizing supply chains, standardizing IT systems and reducing organizational complexity.

The company’s results are likely to reflect HanesBrands' contribution, along with strength in brands, product innovation and solid customer service. It has been enhancing its commercial capabilities to deliver the best offerings to customers. The Activewear segment continues to gain momentum, fueled by market share expansion and strong demand. Gains from these initiatives are likely to have benefited the to-be-reported quarter’s performance.

On the flip side, an evolving operating landscape, including the tariff pressures, is a concern. In addition, higher operating expenses and tariff costs are likely to have dampened its profitability in the quarter under review.

What the Zacks Model Unveils for GIL

Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time around. The combination of a positive Earnings ESPESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Gildan Activewear has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. Price and EPS Surprise

Gildan Activewear, Inc. price-eps-surprise | Gildan Activewear, Inc. Quote

GIL’s Valuation & Price Performance

From the valuation standpoint, GIL has a forward 12-month price-to-earnings ratio of 13.33x, which is below the industry’s average of 18.69x. The stock is trading below its five-year high of 21.94x.

GIL shares have lost 9.6% over the past three months compared with the industry’s 1.7% decline.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:

Cimpress plc CMPR currently has an Earnings ESP of +6.67% and carries a Zacks Rank of 3. CMPR is likely to have registered top and bottom-line growth when it reports third-quarter fiscal 2026 results. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for its quarterly revenues is pegged at $861.8 billion, indicating a 9.2% increase from the figure reported in the year-ago quarter. The consensus estimate for CMPR’s fiscal third-quarter earnings is pinned at 15 cents per share, implying a 145.5% surge from the year-ago quarter’s actual. The consensus mark has fallen 11.8% over the past 30 days.

Marriott International, Inc. MAR currently has an Earnings ESP of +4.03% and a Zacks Rank of 3. MAR is likely to have registered top and bottom-line growth when it reports first-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.58 billion, indicating 5% growth from the figure reported in the year-ago quarter.

The consensus estimate for MAR’s first-quarter earnings is pegged at $2.59 a share, implying 11.6% growth from the year-earlier quarter. The consensus mark has moved up 0.8% over the past seven days.

Boyd Gaming BYD currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. BYD is likely to have registered a top-line decline when it reports first-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $990.8 million, indicating a 0.1% drop from the figure reported in the year-ago quarter.

The consensus estimate for Boyd Gaming’s first-quarter earnings is pegged at $1.75 a share, implying 8% growth from the year-earlier quarter. The consensus mark has been stable over the past 30 days.

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Marriott International, Inc. (MAR): Free Stock Analysis Report
 
Boyd Gaming Corporation (BYD): Free Stock Analysis Report
 
Gildan Activewear, Inc. (GIL): Free Stock Analysis Report
 
Cimpress plc (CMPR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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