The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HSN met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins were steady, net margins shrank.
HSN logged revenue of $778.8 million. The seven analysts polled by S&P Capital IQ wanted to see revenue of $785.6 million on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $751.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The seven earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.31 for Q3 were 24% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.7%, 250 basis points better than the prior-year quarter. Operating margin was 6.3%, about the same as the prior-year quarter. Net margin was 2.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $3.31 billion. The average EPS estimate is $2.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 62 members out of 99 rating the stock outperform, and 37 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give HSN a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HSN is hold, with an average price target of $52.30.
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