logo
  Join        Login             Stock Quote

Hhgregg (HGG) Guides Q3 Below Street, Cuts 2013 Forecast; Shares Off

 January 14, 2013 09:08 AM
 


(By Balaseshan) Electronics retailer Hhgregg Inc. (NYSE: HGG) has cut its fiscal 2013 outlook and guided third quarter below Street's view, citing continued headwinds in the video industry. Following the news, shares fell 6.08% in premarket.

The company said fundamental shifts across the video category continued to pressure its business during the third quarter. The overall store traffic and video category sales were negatively impacted by the declining industry demand for flat screen televisions along with broadened distribution of large-screen televisions.

For the third quarter, the company expects adjusted earnings of about $0.52 per share and net sales of about $799.6 million, while Street predicts profit of $0.59 per share on revenue of $845.32 million.

[Related -hhgregg, Inc. (HGG): Furniture, Credit Offerings Should Offset Consumer Electronics Weakness]

Third quarter comparable store sales are estimated to have decreased about 9.7%, with the video category expected to have declined about 24.6%.

For the fourth fiscal quarter, Hhgregg expects to continue to drive comparable store sales increases and market share gains in the appliance and computing and mobile phone categories. However, the company anticipates that the industry wide declines in the video category will continue.

"We also expect our sales mix to have a negative impact on our gross margin rate in the fourth fiscal quarter compared to the prior year," said CFO Jeremy Aguilar. "These factors along with our third fiscal quarter results are expected to negatively affect fiscal 2013 earnings, as reflected in our revised guidance."

[Related -Stocks End Higher After Fed Speech; iGate (IGTE) Plunges]

For fiscal 2013, the company lowered its earnings per share (EPS) guidance in the range of $0.70 to $0.80 from previous forecast of $0.90 to $1.05. HGG also cut its sales growth outlook to range of flat to 1.0% from previous growth estimate of 3.0% to 6.0%. Street analysts predict EPS of $0.93 on revenue growth of 3.40%.

Hhgregg reduced its fiscal 2013 comparable store sales of negative 8.5% to negative 7.5% from previous guidance of negative 6.0% to negative 4.0%.

HGG closed Friday's regular session at $7.89. The stock has been trading between $5.84 and $13.12 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.