What's In The Cards For Hhgregg (HGG) In Q2 Earnings?

hhgregg, Inc. (NYSE: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.

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. (NASDAQ: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. (NASDAQ:URBN) has an Earnings ESP of +4.55% and a Zacks Rank #3.

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

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