hhgregg Earnings: Here’s Why Investors Don’t Like These Results

hhgregg, Inc. (NYSE:HGG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.75%.

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hhgregg, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20.51% to $0.31 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Decreased 2.63% to $597.63 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: hhgregg, Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.30. It missed the average revenue estimate of $622.57 million.

Quoting Management: Dennis May, President and Chief Executive Officer of the Company, commented, “During our fourth quarter, we experienced sequentially improving comparable store sales each month of the quarter, with March materially better than January. These positive trends are continuing during our first fiscal quarter with comparable store sales running positive low single digits. While I am pleased with the current trends in the business, we are cautiously optimistic given the inherent volatility that exists in our business and the importance of the upcoming Memorial Day sales period.”

Key Stats (on next page)…

Revenue decreased 25.26% from $799.64 million in the previous quarter. EPS decreased 40.38% from $0.52 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.17 and has not changed. For the current year, the average estimate is a profit of $0.74, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)