hhgregg Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

hhgregg (NYS: HGG) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q1), hhgregg met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share increased.


Margins dropped across the board.

Revenue details
 hhgregg booked revenue of $489.9 million. The 13 analysts polled by S&P Capital IQ anticipated sales of $487.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $431.5 million.

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 -$0.16. The 15 earnings estimates compiled by S&P Capital IQ anticipated -$0.16 per share. GAAP EPS were -$0.16 for Q1 against -$0.02 per share for the prior-year quarter.

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 29.9%, 30 basis points worse than the prior-year quarter. Operating margin was -1.9%, 180 basis points worse than the prior-year quarter. Net margin was -1.2%, 100 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $639.6 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $0.94.

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 $12.63.

While many retailers continue to struggle in these tough economic times, a select few are changing the face of the business, and reaping outsized rewards. Is hhgregg the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.

The article hhgregg Beats Up on Analysts Yet Again originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement