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HSN Inc.

by Bill Wilton

March 12, 2010 | Comments : 0 Recommended this article: (0)

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HSN, Inc. ( HSNI - Snapshot Report ) shares are surging on the latest earnings report. However, rising estimates are keeping valuations in check.

Company Description

HSN, Inc. is a retailer that operates several television stations to sell directly to customers. Products can also be purchased online, through catalogs or at brick and mortar locations.

Crushed Estimates

On Mar 3 HSN reported fourth-quarter results that showed an 8% increase in sales, to $840 million. Net income came in at just over $39 million. Year-over-year comparisons for earnings are skewed due to accounting changes that resulted in a $2.15 billion loss last year.

With earnings per shares of 69 cents, up from an adjusted 36 cents last year, HSN topped the Zacks Consensus Estimate by 23 cents.

Estimates Surge

Over the past month the Zacks Consensus Estimate for 2010 is up 21 cents, to $1.41. Next year's consensus is pegged at $1.90, up 39 cents. With earnings of $1.27 in 2009, growth rates are expected to be 11% and 34%, respectively.

The Chart

Shares of HSNI are soaring on the earnings news and subsequent estimate revisions. Despite the rapid increase in price, valuations are still alright, with the stock trading at about 15 times 2011 earnings.

HSN, Inc. - ticker HSN >
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Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

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