Hanesbrands (HBI) Jumps 27.85% on $5-Billion Acquisition Reports

We recently published 10 Stocks on Euphoria. Are You Holding Any? Hanesbrands Inc. (NYSE:HBI) is one of the best-performing stocks on Tuesday.

Hanesbrands soared by 27.85 percent on Tuesday to close at $6.18 apiece as investor sentiment was bolstered by reports that it was set to be acquired by Canada-based Gildan Activewear for $5 billion.

According to news reports citing an unnamed source privy to the matter, Gildan Activewear and Hanesbrands Inc. (NYSE:HBI) are currently in advanced discussions for the potential merger, which could be decided on by the end of the week. The reports said the talks could still go either way.

Last week, Hanesbrands Inc. (NYSE:HBI) reported an impressive earnings performance in the second quarter and first half of the year.

In the quarter period, the company swung to a net income of $81.6 million from a $298 million net loss in the same period last year. Net sales inched up by only 1.8 percent to $991 million from $973 million year-on-year.

In the first half of the year, Hanesbrands Inc. (NYSE:HBI) netted $72.15 million, reversing a $337.5 million net loss in the same comparable period.

Net sales also grew by 1.9 percent to $1.75 billion from $1.72 billion year-on-year.

For the full-year period, Hanesbrands Inc. (NYSE:HBI) expects net sales to hit $3.53 billion, which includes projected headwinds of approximately $35 million from changes in foreign currency exchange rates.

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In the third quarter alone, net sales were targeted at $900 million, including projected headwinds of $7 million.