HHGregg, Inc. Earnings Cheat Sheet: Earnings Higher Than Expected

HHGregg, Inc. (NYSE:HGG) reported net income above Wall Street’s expectations for the fourth quarter. HHgregg, Inc. is a specialty retailer of consumer electronics, home appliances and related services operating under the name hhgregg.

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HHGregg Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for HHGregg, Inc. rose to $14.6 million (36 cents/share) vs. $10 million (25 cents/share) in the same quarter a year earlier. A rise of 45.7% from the year earlier quarter.

Revenue: Rose 21.5% to $507 million YoY.

Actual vs. Wall St. Expectations: HGG beat the mean analyst estimate of 28 cents/share. Estimates ranged from 23 cents per share to 36 cents per share.

Quoting Management: Jeremy Aguilar, Chief Financial Officer of the Company, commented “As we progress through the fiscal year and move beyond the anniversary of the appliance stimulus program, we expect to face more favorable comparable store sales comparisons in the second half of the fiscal year. While we expect the video industry to continue to face challenges in fiscal 2012, we believe the video comparisons are more favorable in the second half of the fiscal year. In addition, we believe our new stores that opened in fiscal 2011, along with an anticipated improvement in appliance sales trends, will partially offset the negative comparable store sales impact from the video category, thus we expect to drive improved comparable store sales results in the second half of the fiscal year.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 32.9%, with the biggest boost coming in the first quarter when revenue rose 53.3% from the year earlier quarter.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 0.9 percentage point to 31.5% from the quarter earlier quarter. In the second quarter, the figure rose 0.9 percentage point to 29.6% from the year earlier quarter.

The company has now seen net income rise in two-straight quarters. In the third quarter, net income rose 18.4% from the year earlier.

Competitors to Watch: Best Buy Co., Inc. (NYSE:BBY), CONN’S, Inc. (NASDAQ:CONN), RadioShack Corporation (NYSE:RSH), GameStop Corp. (NYSE:GME), Systemax (NYSE:SYX), Funtalk China Hldgs. Ltd. (NASDAQ:FTLK), Costco (NASDAQ:COST), BJ’s Wholesale (NYSE:BJ), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Apple (NASDAQ:AAPL), Sears Holdings (NASDAQ:SHLD) and Amazon.com (NASDAQ:AMZN).

Stock Performance: Shares of HGG are up 13% today.

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(Sources: YahooFinance, Xignite Financials)