Hot Topic Beats Analyst Estimates on EPS
Hot Topic (NAS: HOTT) reported earnings on Mar. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Hot Topic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share expanded.
Gross margins dropped, operating margins increased, net margins improved.
Hot Topic logged revenue of $209.9 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $206.7 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $212.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS were $0.21 for Q4 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 2,150 basis points worse than the prior-year quarter. Operating margin was 7.1%, 780 basis points better than the prior-year quarter. Net margin was 4.3%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $169.9 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $725.4 million. The average EPS estimate is $0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 205 members out of 373 rating the stock outperform, and 169 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Hot Topic a green thumbs-up, and 74 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hot Topic is outperform, with an average price target of $8.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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