HSN's Earnings Beat Last Year's by 27%

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 6, 2013 at 12:00AM
Other

HSN (Nasdaq: HSNI) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), HSN met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.

Gross margins grew, operating margins shrank, net margins grew.

Revenue details
HSN logged revenue of $772.7 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $773.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The eight earnings estimates compiled by S&P Capital IQ averaged $0.52 per share. GAAP EPS of $0.56 for Q1 were 30% higher than the prior-year quarter's $0.43 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.3%, 10 basis points better than the prior-year quarter. Operating margin was 6.8%, 10 basis points worse than the prior-year quarter. Net margin was 4.1%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $805.1 million. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $3.44 billion. The average EPS estimate is $3.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 65 members out of 102 rating the stock outperform, and 37 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give HSN a green thumbs-up, and three 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 $62.33.

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