hhgregg Likely to Disappoint in 4Q - Analyst Blog
30 1월 2013 - 9:10PM
Zacks
hhgregg Inc (HGG) is set to report its fiscal
third quarter 2013 results on Jan 31. Last quarter it posted a
surprise of +22.22%. Let’s see how things are shaping up for this
announcement.
Factors to Consider
hhgregg has been facing disappointing results in the video
category since last few quarters due to fundamental shifts in the
video category and lower-than-expected margins across all screen
sizes. In addition, declining industry demand for flat screen
televisions severely impacted overall store traffic and video
category sales. Moreover, promotional activities or product
innovation within the video category has further declined the gross
profit margin rate for the video category and the total company
gross margin rates. Though hhgregg has also been testing new
merchandise categories to improve overall mix in the video
category, we continue to expect sluggish performance in the video
category.
As announced in preliminary results, the company expects its
earnings, sales as well as comparable sales to decline in the third
quarter, due to sluggish performance in the video category. The
company has also slashed its fiscal 2013 guidance on the back of
its weak preliminary third quarter results.
Earnings Whispers?
Our proven model does not conclusively show that hhgregg is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A
Better Method) and a Zacks Rank #1, #2 or #3 for this to happen.
That is not the case here as you will see below.
Zacks ESP: That is because the Most Accurate
estimate and the Zacks Consensus Estimate both stand at $0.52,
which results in ESP of 0.00%.
Zacks Rank #5 (Strong Sell): We caution
investors against this stock as it carries a Zacks Rank #5 (Strong
Sell). The stock is unlikely to beat earnings this quarter with an
earnings ESP of 0.00% along with a Zacks Rank #5 (Strong Sell).
Other Stocks to Consider
Here are some other companies in the retail and wholesale sector
you may want to consider as our model shows they have the right
combination of elements to post an earnings beat this
quarter:
Abercrombie & Fitch Co (ANF), Earnings ESP
of +7.25% and Zacks Rank #1 (Strong Buy)
Urban Outfitters Inc (URBN), Earnings ESP of
+1.82% and Zacks Rank #2 (Buy).
Pricesmart Inc (PSMT), Earnings ESP of +3.80%
and Zacks Rank #3 (Hold)
ABERCROMBIE (ANF): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
PRICESMART INC (PSMT): Free Stock Analysis Report
URBAN OUTFITTER (URBN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
HHGREGG (CE) (USOTC:HGGGQ)
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부터 6월(6) 2024 으로 7월(7) 2024
HHGREGG (CE) (USOTC:HGGGQ)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024