HSN Earnings Cheat Sheet: Beats Forecasts

HSN, Inc. (NASDAQ:HSNI) reported net income above Wall Street’s expectations for the second quarter. HSN, Inc. 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for HSN, Inc. rose to $32 million (53 cents per share) vs. $24.7 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 29.4% from the year earlier quarter.

Revenue: Rose 8.3% to $746.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HSNI reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 41 cents per share. It beat the average revenue estimate of $729.9 million.

Quoting Management: “Our strong performance in the quarter demonstrates the success of our strategies around customer engagement, unique experiences, compelling products and digital expansion,” said Mindy Grossman, CEO of HSN, Inc. “Thecontinued increase in the penetration of our e-commerce sales, the expansion of our mobile business, and the success of our new online gaming site, HSN Arcade, reflect our commitmentto digital growth and leveraging ourcontent across all of our platforms.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 14.9% and in the fourth quarter of the last fiscal year, the figure rose 4.9%.

Revenue has risen the past four quarters. Revenue increased 6% to $724 million in the first quarter. The figure rose 9.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 10.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 30 cents versus a mean estimate of net income of 27 cents per share.

Gross margins grew 0.9 percentage point to 38.4%. The growth seemed to be driven by increased revenue, as the figure rose 8.3% from the year earlier quarter while costs rose 6.7%.

Competitors to Watch: ValueVision Media, Inc. (NASDAQ:VVTV), Liberty Media Corp (NASDAQ:LINTA), eBay Inc. (NASDAQ:EBAY), Gaiam, Inc. (NASDAQ:GAIA), Overstock.com, Inc. (NASDAQ:OSTK), Interactive Corp (NASDAQ:IACI), Amazon.com, Inc. (NASDAQ:AMZN), Hot Topic, Inc. (NASDAQ:HOTT), BIDZ.com, Inc. (NASDAQ:BIDZ), and Stamps.com Inc. (NASDAQ:STMP).

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

(Source: Xignite Financials)

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