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hhgregg (HGG) Q3 Earnings: What's in Store for the Stock?
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hhgregg, Inc. , a specialty retailer of home appliances, electronics and furniture is slated to release its third-quarter fiscal 2017 results on Jan 26. The question facing the investors is, whether the company will be able to post a positive earnings surprise in the quarter to be reported. In the last quarter, hhgregg had posted a negative earnings surprise of 30.8%. However, the company has outpaced the Zacks Consensus Estimate by an average of 9.6% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that hhgregg is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
hhgregg has an Earnings ESP of 0.00%, as the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 26 cents. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing this Quarter
hhgregg is expected to report soft sales during the fiscal third quarter compared with the prior year due to competitive pressure in the market. For the fiscal third quarter, the company projects net sales to decline approximately 24% year over year to $453 million, with a drop of approximately 22% in comparable store sales (comps).
The dismal comps performance of the company is due to decline in comps across all its segments. The consumer electronics category was affected the most as it is a larger mix of the business during the holidays. It is expected to plunge around 39%. The appliance category is expected to dip approximately 4% and the home products category is estimated to decrease approximately 9%.
hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comps. We noted that the stock has plummeted 64.8% in the past one year, clearly underperforming the Zacks categorized Retail-Consumer Electronics industry’s gain of 40.5%.
However, hhgregg has been making efforts to revive the business, which include driving store traffic, enhancing brand recognition, cost containment and multi-channel approach. Also, the company is shifting its focus from consumer electronics to appliances and furniture. Alongside, management is focusing on enhancing its eCommerce business.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Tractor Supply Company (TSCO - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank #2.
Yum! Brands, Inc. (YUM - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #3.
"Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>"
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hhgregg (HGG) Q3 Earnings: What's in Store for the Stock?
hhgregg, Inc. , a specialty retailer of home appliances, electronics and furniture is slated to release its third-quarter fiscal 2017 results on Jan 26. The question facing the investors is, whether the company will be able to post a positive earnings surprise in the quarter to be reported. In the last quarter, hhgregg had posted a negative earnings surprise of 30.8%. However, the company has outpaced the Zacks Consensus Estimate by an average of 9.6% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that hhgregg is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
HHGregg, Inc. Price and EPS Surprise
HHGregg, Inc. Price and EPS Surprise | HHGregg, Inc. Quote
hhgregg has an Earnings ESP of 0.00%, as the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 26 cents. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Influencing this Quarter
hhgregg is expected to report soft sales during the fiscal third quarter compared with the prior year due to competitive pressure in the market. For the fiscal third quarter, the company projects net sales to decline approximately 24% year over year to $453 million, with a drop of approximately 22% in comparable store sales (comps).
The dismal comps performance of the company is due to decline in comps across all its segments. The consumer electronics category was affected the most as it is a larger mix of the business during the holidays. It is expected to plunge around 39%. The appliance category is expected to dip approximately 4% and the home products category is estimated to decrease approximately 9%.
hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comps. We noted that the stock has plummeted 64.8% in the past one year, clearly underperforming the Zacks categorized Retail-Consumer Electronics industry’s gain of 40.5%.
However, hhgregg has been making efforts to revive the business, which include driving store traffic, enhancing brand recognition, cost containment and multi-channel approach. Also, the company is shifting its focus from consumer electronics to appliances and furniture. Alongside, management is focusing on enhancing its eCommerce business.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Michael Kors Holdings Limited has an Earnings ESP of +2.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tractor Supply Company (TSCO - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank #2.
Yum! Brands, Inc. (YUM - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #3.
"Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>"