HHGregg (NYSE: HGG) slumps after warning; Best Buy also drops

Palm Beach, FL 7/11/12 (StreetBeat) -- HHGregg Inc. (NYSE:HGG) shares slumped 32% to $7.89 on Wednesday after the electronics retailer projected a wider first-quarter loss. It forecast a loss of between $5.7 million and $6.2 million, or 16 cents to 17 cents a share. That missed the 4-cent consensus loss estimate. Comparable sales dropped 5.1%, hurt by a 16.7% slump in video sales, about a third of the company's total sales. "Our sales results for the quarter are an indicator of the difficulty in the current retail environment, and more specifically the embedded volatility in the video industry," said Chief Executive Dennis May.

The company also cut its full-year high-end profit outlook to $1.05 a share, from a prior guidance of $1.27. The company said it's reducing advertising expenses and restructuring its field teams to cut costs to offset headwinds in the video industry. Larger rival Best Buy Co. (NYSE:BBY) also dropped 5.4% to $20.

Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.

StreetBeat Disclaimer

Distributed by Viestly

Hhgregg (NYSE: HGG) forecasts weak Q3 profit, cuts FY12 outlook

Tallahassee, FL 1/10/12 (StreetBeat) – Hhgregg (NYSE: HGG) forecast weak third-quarter earnings and slashed its 2012 outlook hurt by lower-than-expected margins in its video category and higher advertising spend . The lowered 2012 outlook comes roughly two months after the U.S. appliance and electronics chain hiked its forecast for the year.

Hhgregg now expects 2012 earnings to come in at $1.05-$1.15 a share, down from its previous outlook of $1.26-$1.41 a share. Analysts, on average, expected earnings of $1.12 a share, according to Thomson Reuters I/B/E/S. "Industry-wide pressure on sales and margin within the video category will continue into the fourth fiscal quarter and will negatively affect our fiscal 2012 earnings," Chief Financial Officer Jeremy Aguilar said in a statement.

On a preliminary basis, Hhgregg expects third-quarter earnings of about $22.5 million, or 60 cents per share, compared with $26.9 million, or 66 cents a share, last year. It expects sales to rise about 27 percent to $829.5 million. Analysts were expecting a profit of 77 cents a share, on revenue of $812.5 million for the third quarter.

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

Shares of Indianapolis-based Hhgregg closed at $13.13 on Monday on the New York Stock Exchange.

StreetBeat Disclaimer

Distributed by Viestly