) 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
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.
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.
: That is because the Most Accurate estimate and the Zacks
Consensus Estimate both stand at $0.52, which results in ESP of
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
Abercrombie & Fitch Co
), Earnings ESP of +7.25% and Zacks Rank #1 (Strong Buy)
Urban Outfitters Inc
), Earnings ESP of +1.82% and Zacks Rank #2 (Buy).
), 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
URBAN OUTFITTER (URBN): Free Stock Analysis
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