Why Hhgregg (HGG) Stock Is Plummeting Today

NEW YORK (TheStreet) -- Shares of Hhgregg Inc. (HGG) are plummeting -7.69% to $8.04 on Tuesday.

The stock began to fall after the home appliance retail chain announced a sharp decrease in sales and said FQ4 profit will be below expectations.

In a report announcing their preliminary fourth fiscal quarter sales the company "estimates net sales to be approximately $538.3 million, a decrease of approximately 9.9% as compared to net sales of $597.6 million reported for the fourth fiscal quarter of 2013."

Comparable store sales for the fourth quarter have also decreased 9.9%, consumer electronic sales decreased 18.9% and computing and wireless sales are down 22.6%.

"For the fiscal year ended March 31, 2014, the company expects to report net sales of approximately $2.3 billion and expects net income per diluted share of $0.01," the company said in its report.

TheStreet Ratings team rates HHGREGG INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HHGREGG INC (HGG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."

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