HSN Inc. Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise

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

Results: Net income for HSN, Inc. rose to $24.3 million (40 cents per share) vs. $14.9 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 63.3% from the year earlier quarter.

Revenue: Rose 6% to $751.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HSNI reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 34 cents per share. Analysts were expecting revenue of $754.4 million.

Quoting Management: “HSNi delivered another quarter of strong sales, EBITDA and EPS growth year-over-year. We achieved these results while executing on a number of significant initiatives, including new launches, events and expansion of our digital efforts,” said Mindy Grossman, CEO of HSN, Inc. “The performance of both HSN and Cornerstone in the quarter, as well as our recently announced capital return plan, reflect our focus on driving shareholder value and our confidence in HSNi’s long-term growth potential.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 29.4% and in the first quarter, the figure rose 14.9%.

Revenue has risen the past four quarters. Revenue increased 8.3% to $746.9 million in the second quarter. The figure rose 6% in the first quarter from the year earlier and climbed 9.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 12 cents in the second quarter and by 3 cents in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 85 cents per share to 84 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past three months, the average estimate for the fiscal year has climbed from $1.94 per to share to $2.05.

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), The Parent Company (KIDSQ), Amazon.com, Inc. (NASDAQ:AMZN), Hot Topic, Inc. (NASDAQ:HOTT), BIDZ.com, Inc. (NASDAQ:BIDZ), and Stamps.com Inc. (NASDAQ:STMP).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)