Hhgregg Inc. Second Quarter Earnings Sneak Peek

Hhgregg, Inc. (NYSE:HGG) will unveil its latest earnings on Wednesday, November 2, 2011. 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 net income of 6 cents per share, a decline of 40% 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 8 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month. For the year, analysts are projecting profit of $1.20 per share, a decline of 1.6% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported a loss of 2 cents per share versus a mean estimate of 0 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 10 cents.

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Wall St. Revenue Expectations: On average, analysts predict $539.6 million in revenue this quarter, a rise of 12.2% from the year ago quarter. Analysts are forecasting total revenue of $2.37 billion for the year, a rise of 13.9% from last year’s revenue of $2.08 billion.

Analyst Ratings: Analysts seem relatively indifferent about hhgregg with 10 of 15 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, the company swung to a loss of $761,000 (2 cents a share) from a profit of $2.7 million (7 cents) a year earlier, missing analyst expectations. Revenue fell 1% to $431.5 million from $436 million.

Key Stats:

A year-over-year revenue decrease in the first quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 21.5%in the fourth quarter of the last fiscal year, 30.6% in the third quarter of the last fiscal year and 44.8% in the second quarter of the last fiscal year.

Hhgregg’s loss in the latest quarter followed profits in the previous three quarters. The company reported a profit of $14.6 million in the fourth quarter of the last fiscal year, a profit of $26.9 million in the third of the last fiscal year and a profit of $3.9 million in the second quarter of the last fiscal year.

Competitors to Watch: Best Buy Co., Inc. (NYSE:BBY), CONN’S, Inc. (NASDAQ:CONN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Systemax (NYSE:SYX), RadioShack Corporation (NYSE:RSH), GameStop Corp. (NYSE:GME) and Funtalk China Hldgs. Ltd. (NASDAQ:FTLK).

Stock Price Performance: During September 29, 2011 to October 27, 2011, the stock price had risen $2.95 (29%) from $10.17 to $13.12. The stock price saw one of its best stretches over the last year between November 16, 2010 and November 26, 2010 when shares rose for eight-straight days, rising 12.4% (+$2.77) over that span. It saw one of its worst periods between July 7, 2011 and July 20, 2011 when shares fell for 10-straight days, falling 14.2% (-$1.94) over that span. Shares are down $7.83 (-37.4%) year to date.

(Source: Xignite Financials)

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