The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Hot Topic met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Hot Topic logged revenue of $233.0 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $233.0 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $209.9 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 $0.29. The six earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. GAAP EPS of $0.29 for Q4 were 38% higher than the prior-year quarter's $0.21 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 38.0%, 220 basis points worse than the prior-year quarter. Operating margin was 8.2%, 410 basis points worse than the prior-year quarter. Net margin was 5.2%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $184.9 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $797.8 million. The average EPS estimate is $0.56.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 204 members out of 374 rating the stock outperform, and 170 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Hot Topic a green thumbs-up, and 66 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hot Topic is hold, with an average price target of $12.34.
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