Jefferies Cuts Price Target on hhgregg (HGG) As Holiday Promotions Weigh on Earnings
Tweet
Share
E-mailGet Alerts HGG Hot Sheet
Price: $0.23 --0%
Rating Summary:
1 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Jefferies is reaffirming its Hold rating on shares of hhgregg (NYSE: HGG) and is reducing its price target from $14 to $12 due to weak holiday results.
The company was forced to use heavy promotions to drive sales over the holiday season. The firm highlights this will negatively affect the company's earnings and has lowered its earnings estimates as a result. Appliance sales were up 6.8 percent on a same store sales basis while TV margins were down considerably.
For Q3 and FY12, the firm cut its EPS estimates from $0.83 and $1.40 to $0.60 and $1.10. Jefferies also lowered its FY13 EPS estimate from $1.50 to $1.17.
An analyst at Jefferies comments, "We think investors understood it was a promotional holiday, but this performance was worse than expected and will likely keep shares trading at a low multiple."
For an analyst ratings summary and ratings history on hhgregg click here. For more ratings news on hhgregg click here.
Shares of hhgregg closed at $11.08 yesterday.
The company was forced to use heavy promotions to drive sales over the holiday season. The firm highlights this will negatively affect the company's earnings and has lowered its earnings estimates as a result. Appliance sales were up 6.8 percent on a same store sales basis while TV margins were down considerably.
For Q3 and FY12, the firm cut its EPS estimates from $0.83 and $1.40 to $0.60 and $1.10. Jefferies also lowered its FY13 EPS estimate from $1.50 to $1.17.
An analyst at Jefferies comments, "We think investors understood it was a promotional holiday, but this performance was worse than expected and will likely keep shares trading at a low multiple."
For an analyst ratings summary and ratings history on hhgregg click here. For more ratings news on hhgregg click here.
Shares of hhgregg closed at $11.08 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Zurn Water Solutions (ZWS) Reiterated at Buy by Stifel on New Product Development Momentum
- DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
