The 10-second takeaway
For the quarter ended March 31 (Q4), hhgregg missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
hhgregg reported revenue of $597.6 million. The 14 analysts polled by S&P Capital IQ looked for a top line of $619.2 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 came in at $0.31. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.29 per share. GAAP EPS of $0.31 for Q4 were 79% lower than the prior-year quarter's $1.45 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 29.9%, 60 basis points worse than the prior-year quarter. Operating margin was 2.8%, 100 basis points worse than the prior-year quarter. Net margin was 1.7%, 700 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $521.8 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $2.55 billion. The average EPS estimate is $0.81.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on hhgregg is hold, with an average price target of $7.93.
Is hhgregg the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add hhgregg to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends hhgregg. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.