January 10, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of retailer hhgregg (NYSE: HGG ) fell 13% today after the company forecasted weak fiscal third-quarter results.
So what: Third-quarter earnings per share are now expected to be $0.60 versus estimates of $0.77 from analysts. For the fiscal year 2012, the company is now seeing earnings per share of $1.05 to $1.15 from a prior estimate of $1.26 to $1.41.
Now what: This shouldn’t come as a huge surprise with the pressure electronics retailers like Best Buy have been feeling lately. This entire retail segment is being attacked from all sides as the Internet and discount retailers encroach on their territory. I wouldn’t buy this discount and would stay far away from electronics retailers right now.
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