Hhgregg Inc. Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise

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

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hhgregg Earnings Cheat Sheet for the Second Quarter

Results: Net income for hhgregg Inc. rose to $6 million (16 cents per share) vs. $3.9 million (10 cents per share) in the same quarter a year earlier. This marks a rise of 53.1% from the year earlier quarter.

Revenue: Rose 28.6% to $618.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HGG beat the mean analyst estimate of 6 cents per share. It beat the average revenue estimate of $539.6 million.

Quoting Management: Dennis May, President and Chief Executive Officer of the Company, commented, “We were pleased with our overall results during the quarter and our ability to deliver strong growth in both net sales and net income per diluted share. During the quarter, our strategic initiatives began to gain traction and generate favorable results. We launched our new website, gained market share in appliances, and expanded our assortment in the home office category, all while successfully opening 24 new stores in the Chicago and Miami markets. Additionally, we drove customer traffic and market share gains through increased promotional activity, primarily in the video category. While this resulted in pressure on our gross margin performance in the video category, this approach enabled us to generate positive comparable store sales.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the first quarter with a loss of 2 cents versus a mean estimate of 0 cents per share.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 1% to $431.5 million in the first quarter from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 77 cents a share to 74 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.29 a share to $1.20 over the last ninety days.

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).

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(Source: Xignite Financials)