Gildan Activewear (NYSE:GIL) Receiving Caution from FBR

FBR Capital reiterated their "Underperform" rating on Gildan Activewear (NYSE:GIL), citing last quarter's results the consequence of a one-time tax benefit.

FBR said, "The fourth quarter was a mixed bag, and we believe the outlook validated our cautious stance heading into the print. EPS for 4Q came in ahead of our expectation, but the beat was attributable to a one-time lower tax benefit (added $0.05); sales were slightly ahead of our forecast, but operating margin was 60 bps below. Sales trends in 4Q reflect continued momentum in activewear, partially offset by weak dollar growth in socks...Our FY11 EPS estimate of $1.80 is down from $1.82 (versus current consensus of $1.97)."

Gildan closed Friday at $28.87, dropping $0.14, or 0.48 percent. FBR has a price target of $26 on them.