hhgregg Misses on Revenues but Beats on EPS

Seth Jayson, The Motley Fool
Updated

hhgregg (NYS: HGG) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), hhgregg missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.


Gross margins dropped, operating margins dropped, and net margins grew.

Revenue details
hhgregg booked revenue of $613.8 million. The 15 analysts polled by S&P Capital IQ looked for revenue of $644.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $507.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.39. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $1.45 for Q4 were 303% higher than the prior-year quarter's $0.36 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.5%, 100 basis points worse than the prior-year quarter. Operating margin was 3.8%, 160 basis points worse than the prior-year quarter. Net margin was 8.7%, 580 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $513.5 million. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $2.81 billion. The average EPS estimate is $1.23.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on hhgregg is hold, with an average price target of $13.54.

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At the time thisarticle 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. Motley Fool newsletter services have recommended buying shares of hhgregg. 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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