Gildan Activewear Boosts FY18 Outlook - Quick Facts

(RTTNews) - Gildan Activewear Inc. (GIL, GIL.TO) on Thursday updated its full year 2018 financial guidance and is now projecting adjusted earnings in the range of $1.85 to $1.90 per share, up from the previous guidance range of $1.80 to $1.90 per share. 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.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.86 per share on sales growth of 3.0 percent to $2.83 billion for the year. Analysts' estimates typically exclude special items.

The company also expects adjusted EBITDA to be in the range of $605 million to $620 million, up from $595 million to $620 million range 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. Guidance for capital expenditures remains at about $125 million for 2018.

Further, the company's Board of Directors declared a cash dividend of $0.112 per share, payable on September 10, 2018 to shareholders of record on August 16, 2018.

For the second quarter, net earnings increased to $109.0 million or $0.51 per share from $107.7 million or $0.48 per share in the prior-year quarter. Adjusted earnings were $0.52 per share, compared to last year's $0.49 per share. Net sales increased 6.8 percent to 764.2 million from last year's $715.4 million.

Analysts expected quarterly earnings of $0.49 per share on sales of $728.40 million.