Hhgregg Third Quarter Earnings Sneak Peek

Hhgregg, Inc. (NYSE:HGG) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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 52 cents per share, a decline of 13.3% from the company’s actual earnings in the year-ago quarter. During the past three months, the average estimate has moved down from 59 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month.

Past Earnings Performance: Last quarter, the company reported net income of 11 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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A Look Back: In the second quarter, profit fell 37.6% to $3.8 million (11 cents a share) from $6 million (16 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5% to $587.6 million from $618.6 million.

Here’s how Hhgregg traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

hgg

Wall St. Revenue Expectations: On average, analysts predict $803.8 million in revenue this quarter, a decline of 3.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.5 billion for the year, a rise of 0.4% from last year’s revenue of $2.49 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.7 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 1.79 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.8% to $249.8 million while assets rose 4.5% to $424.2 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 26.9% in the third quarter of the last fiscal year, 21.1% in the fourth quarter of the last fiscal year and 13.5%in the first quarter before dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 14 analysts surveyed giving that rating.

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