Hhgregg Reports Preliminary Q1 Results; Lowers Guidance

Hhgregg

released preliminary first-quarter earnings results on Tuesday after the closing bell, missing analysts' expectations. The company said that it expects a net loss between $5.7 million, or $0.16 per share, and $6.2 million, or $0.17 per share. This compares to analysts' consensus EPS estimates of a loss of $0.04. Sales in the first-quarter are expected to be $490 million, a 13.5% increase versus the $431.5 million HGG reported last year. This is well below Wall Street revenue estimates of $509.19 million. Looking ahead, HGG now sees net income per share for fiscal 2013 between $0.90 to $1.05 compared to previous guidance of $1.12 to $1.27. Comparable store sales are now expected to be between negative 6% and negative 4% versus prior guidance of negative 1% to positive 1%. Total net sales for fiscal 2013 are now expected to increase 3% to 6% versus prior guidance of an increase of 9% to 12%. In the after hours trading session, HGG shares have plunged in light of the weak first-quarter preliminary results and the lowered fiscal 2013 guidance. The stock had lost more than 22% to $8.98.