hhgregg Earnings: Here’s Why Investors Like These Results

hhgregg, Inc. (NYSE:HGG) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.38%.

hhgregg, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.04 in the quarter versus EPS of $-0.16 in the year-earlier quarter.

Revenue: Rose 7.16% to $524.92 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: hhgregg, Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company beat the mean analyst estimate of $-0.15. It beat the average revenue estimate of $523.78 million.

Quoting Management: Dennis May, President and CEO commented, “We are pleased with the early results and consumer feedback on the new product assortments that we have introduced and will continue to expand and refine these category additions throughout the coming year. We remain committed to improving productivity levels across our existing store base and are pleased with the early progress on our strategic initiatives to not only reshape our sales mix, but to expand our customer base and enhance our service offerings. The quarter’s results significantly outperformed our prior year earnings comparison, due to our positive comparable store sales and lapping the cost cutting measures put in place during the second quarter of the prior fiscal year, and are in-line with our expectations.”

Key Stats (on next page)…

Revenue decreased 12.17% from $597.63 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.31 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.13. For the current year, the average estimate has moved up from a profit of $0.79 to a profit of $0.84 over the last ninety days.

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