HSN Earnings: Beats Estimates Despite Two Straight Quarters of Profit Drops

HSN Inc. (NASDAQ:HSNI) reported its results for the third quarter. HSN is an interactive multi-channel retailer offering retail experiences on TV, online, in catalogs and in retail and outlet stores.

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HSN Inc. Earnings Cheat Sheet

Results: Net income for HSN Inc. fell to $17.7 million (31 cents per share) vs. $24.3 million (40 cents per share) a year earlier. This is a decline of 27.2% from the year-earlier quarter.

Revenue: Rose 7.1% to $778.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: HSN Inc. reported adjusted net income of 66 cents per share. By that measure, the company beat the mean estimate of 49 cents per share. It beat the average revenue estimate of $747.1 million.

Quoting Management: “Our strong financial performance during the quarter demonstrates the sustained effectiveness of our overall strategy of creating immersive experiences, offering differentiated products and leveraging technology to build relationships, not just transactions,” said Mindy Grossman, CEO of HSN, Inc. “This approach enabled HSNi to achieve 7% sales growth and 32% growth in Adjusted EPS. In addition, we continued to return value to shareholders by increasing our cash dividend and through our share repurchase program.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 3.8% from the year-earlier quarter.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by one cent in the second quarter and by 3 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 95 cents a share to $1 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $2.41 per to share to $2.54.

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

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