Hot Topic, Inc. Second Quarter Earnings Sneak Peek

Hot Topic, Inc. (NASDAQ:HOTT) will unveil its latest earnings on Wednesday, August 17, 2011. Hot Topic Inc. is a mall- and web-based specialty retailer operating the Hot Topic and Torrid concepts, as well as the e-space music discovery concept, ShockHound.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Hot Topic, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 8 cents per share, a narrower loss from the year earlier quarter net loss of 14 cents. During the past three months, the average estimate has moved up from a loss of 11 cents. Between one and three months ago, the average estimate moved up, and has risen from a loss of 9 cents during the last month. For the year, analysts are projecting net income of 16 cents per share, a swing from net loss of one cent last year.

Past Earnings Performance: For the past four quarters, the company has met expecations. Last quarter, the company reported 0 cents per share to fall in step with the mean estimate.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wall St. Revenue Expectations: On average, analysts predict $147.6 million in revenue this quarter, a decline of 1.6% from the year ago quarter. Analysts are forecasting total revenue of $698 million for the year, a decline of 1.4% from last year’s revenue of $708.2 million.

Analyst Ratings: Analysts seem relatively indifferent about Hot Topic with five of nine analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 0.8% to $161.3 million in first quarter. The figure fell 0.9% in the fourth quarter of the last fiscal year from the year earlier, dropped 3.3% in third quarter of the last fiscal year from the year-ago quarter and 4.9% in the second quarter of the last fiscal year.

Competitors to Watch: Zumiez Inc. (NASDAQ:ZUMZ), Urban Outfitters, Inc. (NASDAQ:URBN), Mecox Lane Limited ADR (NASDAQ:MCOX), Amazon.com, Inc. (NASDAQ:AMZN), dELiA*s, Inc. (NASDAQ:DLIA), American Eagle Outfitters (NYSE:AEO), Aeropostale, Inc. (NYSE:ARO), The Buckle, Inc. (NYSE:BKE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), and The Wet Seal, Inc. (NASDAQ:WTSLA).

Stock Price Performance: During July 15, 2011 to August 12, 2011, the stock price had dropped $1.36 (-17.1%) from $7.95 to $6.59. The stock price saw one of its best stretches over the last year between March 18, 2011 and March 28, 2011 when shares rose for seven-straight days, rising 16.4% (+82 cents) over that span. It saw one of its worst periods between November 4, 2010 and November 16, 2010 when shares fell for nine-straight days, falling 8.2% (-47 cents) over that span. Shares are up 49 cents (+8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.