The 10-second takeaway
For the quarter ended Sep. 30 (Q2), hhgregg missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins dropped.
hhgregg notched revenue of $587.6 million. The 16 analysts polled by S&P Capital IQ predicted a top line of $638.0 million on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $618.6 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 $0.11. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS of $0.11 for Q2 were 31% lower than the prior-year quarter's $0.16 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 29.6%, 100 basis points better than the prior-year quarter. Operating margin was 1.1%, 60 basis points worse than the prior-year quarter. Net margin was 0.6%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $850.6 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $0.92.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on hhgregg is hold, with an average price target of $8.52.
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