IBJNews

HHGregg shares sink on disappointing earnings

Back to TopCommentsE-mailPrintBookmark and Share

Appliance and electronics retailer HHGregg Inc. said Tuesday that it expects its fiscal third-quarter earnings to decline, hurt by lower-than-expected profit margins in the video-product category and higher spending ad .

Its shares fell more than 15 percent in Tuesday trading.

The Indianapolis-based company expects earnings of $22.5 million, or 60 cents per share, for the three months that ended on Dec. 31. That's down from $26.9 million, or 66 cents per share, in the same period a year ago.

HHGregg expects revenue of $829.5 million, up 27 percent from $653.7 million.

Analysts, on average, were expecting earnings of 77 cents per share on revenue of $811.8 million, according to a poll by FactSet.

Dennis May, HHGregg president and CEO, attributed the disappointing earnings partly to falling prices and tighter profit margins for flat-screen televisions.

“The video industry experienced heavier than expected promotional activity across all screen sizes, which negatively impacted industry average selling prices and margins,” May said.

HHGregg estimated that its sales at stores open at least a year grew 3.9 percent in the third quarter. This is a key measure of a retailer's health because it excludes stores that opened or closed during the year.

For the full year, the company now expects earnings of $1.05 to $1.15 per share, down from its earlier outlook of $1.26 to $1.41 per share.

It expects revenue to grow by 22 to 24 percent, compared with its previous guidance of a 20 percent to 25 percent increase.

Analysts are expecting earnings of $1.34 per share on revenue of $2.5 billion for the year ending in March.

HHGregg plans to officially report its full quarterly financial results on Feb. 8.

The company's stock was down $2.05, or 15.6 percent, to $11.08 per share just before closing on Tuesday.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

ADVERTISEMENT