Hot Topic Beats on Both Top and Bottom Lines
Hot Topic (NAS: HOTT) reported earnings on May 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Hot Topic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
Hot Topic reported revenue of $171.6 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $169.4 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $161.3 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 $0.09. The four earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were $0.09 for Q1 against -$0.17 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 36.0%, 470 basis points better than the prior-year quarter. Operating margin was 3.5%, 860 basis points better than the prior-year quarter. Net margin was 2.2%, 700 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $158.6 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $737.6 million. The average EPS estimate is $0.38.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 207 members out of 381 rating the stock outperform, and 174 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Hot Topic a green thumbs-up, and 75 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 $10.80.
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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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