The Gory Details on HSN's Double Fumble

Seth Jayson, The Motley Fool
Updated

HSN (NAS: HSNI) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), HSN missed slightly on revenues and missed estimates on earnings per share.

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


Margins grew across the board.

Revenue details
 HSN reported revenue of $982.9 million. The seven analysts polled by S&P Capital IQ expected to see net sales of $1.00 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $1.00. The seven earnings estimates compiled by S&P Capital IQ forecast $1.02 per share. GAAP EPS of $1.00 for Q4 were 30% higher than the prior-year quarter's $0.77 per share.

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 34.4%, 80 basis points better than the prior-year quarter. Operating margin was 9.4%, 30 basis points better than the prior-year quarter. Net margin was 5.7%, 80 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $779.6 million. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $3.46 billion. The average EPS estimate is $3.21.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HSN is hold, with an average price target of $56.83.

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The article The Gory Details on HSN's Double Fumble 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 position in any of the stocks mentioned. 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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