Hot Topic Earnings Disappoint
Tween retailer, Hot Topic (NASDAQ: HOTT), misses earnings last night when they reported an EPS of $0.18 on $214 million in revenue, but the stock is trading flat this morning as it appears that a miss was already built into the stock. The company also reported that same store comps would be in the high single digits for the upcoming quarter and that they were expecting a loss for that quarter. This analysis was in line with the Street consensus, which may be one of the reasons the stock isn’t getting hammered.
Hot Topic’s chart looks a little broken here; the only thing it has to hang its hat on is the $6 support level, but that looks shaky at best. I would be very cautious in this name. Hot Topic was also lowered from a “Hold” to a “Sell” by S&P last night post earnings.
