HSN Second Quarter Earnings Sneak Peek

HSN, Inc. (NASDAQ:HSNI) will unveil its latest earnings on Wednesday, August 1, 2012. HSN is an interactive multi-channel retailer offering retail experiences on TV, online, in catalogs and in retail and outlet stores.

HSN, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 60 cents per share, a rise of 13.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 59 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 60 cents during the last month. For the year, analysts are projecting profit of $2.43 per share, a rise of 16.8% from last year.

Last quarter, the company came in at net income of 40 cents per share against a mean estimate of profit of 37 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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A Look Back: In the first quarter, profit rose 29% to $26.2 million (44 cents a share) from $20.3 million (34 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.2% to $747.3 million from $724 million.

Stock Price Performance: Between May 1, 2012 and July 26, 2012, the stock price rose $3.93 (10.2%), from $38.49 to $42.42. The stock price saw one of its best stretches over the last year between July 6, 2012 and July 18, 2012, when shares rose for nine straight days, increasing 5.8% (+$2.36) over that span. It saw one of its worst periods between June 15, 2012 and June 25, 2012 when shares fell for seven straight days, dropping 7% (-$2.90) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.34 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 63.4% in the third quarter of the last fiscal year and 12.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.3% in the second quarter of the last fiscal year, 6.1% in the third quarter of the last fiscal year and 4.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 3.8% in revenue from the year-earlier quarter to $775.1 million.

Analyst Ratings: There are five out of seven analysts surveyed (71.4%) rating HSN a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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