Loading...
Loading...
hhgregg Inc
HGG reported strong earnings last night, and also raised full year shares to 20%-25% growth, up previously from 15%-20%.
The company reported quarterly earnings of 16 cents per share on $618.6 million in revenues. Wall Street was looking for earnings of 6 cents per share on $539.6 million in revenues.
Jefferies was also especially
positive on the quarter, raising its price target to $14 from $12. It did keep the Hold rating on shares, as shares have moved past the company's price target.
In a note to clients, Jefferies wrote, "A lot of upside in sales for Q2 was driven by promotion and appeared to be without serious response from competitors – that may be on the way as holidays draw closer. With that said, execution appears better this quarter with the launch of an improved website, better sales force segmentation in store, expanded product assortment in computing and better close rates. This should position the company better for holiday versus last year."
This begs the question. Is hhgregg a physically viable competitor to Best Buy
BBY?
The problems with Best Buy are well known by now. Unfriendly and less than knowledgeable staff. Prices are too high. Best Buy's stores have become essentially a showroom for Amazon
AMZN. Yet, that has not happened to hhgregg.
Everyone loves Amazon because of the low prices, customer ratings, access to everything under one roof, and incredibly easy return policies. Don't forget the free shipping as well. Amazon has continued to take market share away from Best Buy and Wal-Mart
WMT in electronics.
Despite all of Amazon's positives, there is one thing it can not compete with. The need to have it now. Even though Amazon Prime allows you to have free two day shipping for $79 per year, two days is not instant. If someone wants a video game or a movie or a TV now, Amazon can offer that. Hhgregg can.
Is hhgregg finally a physical competitor to Best Buy? Let us know what you think in the comments.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in