Hhgregg, Inc. Second Quarter Earnings Sneak Peek

Hhgregg, Inc. (NYSE:HGG) will unveil its latest earnings on Tuesday, October 30, 2012. HHgregg is a specialty retailer of consumer electronics, home appliances and related services.

hhgregg, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, a decline of 37.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 11 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 10 cents during the last month.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with a loss of 16 cents per share against the mean estimate of 17 cents. In the prior quarter, the company reported net income of 39 cents.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $5.7 million (16 cents a share) from a loss of $761,000 (2 cents) a year earlier, but beat analyst expectations. Revenue rose 13.5% to $489.9 million from $431.5 million.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose 37 cents (5.4%), from $6.88 to $7.25. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 5, 2012, when shares rose for eight straight days, increasing 12.4% (+$1.28) over that span. It saw one of its worst periods between July 10, 2012 and July 20, 2012 when shares fell for nine straight days, dropping 45.3% (-$5.23) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.79 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.98 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.9% to $227.4 million while assets rose 2.8% to $406.1 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 22.5% over the last four quarters.

Wall St. Revenue Expectations: Analysts are projecting a rise of 3.2% in revenue from the year-earlier quarter to $638.6 million.

Analyst Ratings: There are mostly holds on the stock with 12 of 14 analysts surveyed giving that rating.

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

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