U.S. Markets closed

What's in the Cards for hhgregg (HGG) in Q2 Earnings?

Zacks Equity Research

hhgregg, Inc. HGG is slated to release second-quarter fiscal 2017 results on Nov 3, 2016, before the market opens. The question facing investors is, whether this appliance and electronics retailer will be able to post a positive earnings surprise again in the quarter to be reported. Last quarter, hhgregg posted a positive earnings surprise of 32.3%. Also, the company outpaced the Zacks Consensus Estimate by an average of 16.6% in the trailing four quarters. Let’s see how things are shaping up for this announcement.

HHGREGG INC Price and EPS Surprise

HHGREGG INC Price and EPS Surprise | HHGREGG INC Quote

Zacks Model Shows Unlikely to Beat Estimates

Our proven model does not conclusively show that hhgregg is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen.

hhgregg has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 39 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Factors Influencing this Quarter

hhgregg has been undertaking several initiatives to revive its business, which encompass driving store traffic, enhancing brand recognition, cost containment and a multi-channel approach. Also, the company is dependent on its appliance category and plans to expand its Fine Lines store program to boost sales. Further, it remains on track to enhance its e-commerce business.

However, hhgregg has been reporting losses and declining revenues for the past several quarters, primarily due to soft comparable store sales. Also, it faces the brunt of a weak U.S. economy and declining consumer spending in the U.S.

Nonetheless, estimates have been stable ahead of the company's second-quarter earnings release.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Hibbett Sports, Inc. HIBB has an Earnings ESP of +4.00% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Urban Outfitters Inc. URBN has an Earnings ESP of +4.55% and a Zacks Rank #3.

J. C. Penney Company, Inc. JCP has an Earnings ESP of +10.00% and a Zacks Rank #3.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
URBAN OUTFITTER (URBN): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
HIBBET SPORTS (HIBB): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research