Jefferies & Company Lowers HHGregg Estimates

Jefferies & Company is lowering its HHGregg, Inc. HGG FY11 and FY12 EPS estimates to $1.37 and $1.70, from $1.45 and $1.75, respectively. “With expectations lower and the stock discounting EPS risk rather than a strong unit growth story, investors need to watch for a turn in TV momentum,” Jefferies & Company writes. “Recent checks suggest Oct. got Q3 off to a slow start, but additional price cuts are coming.” Jefferies & Company said that it is now at a point where it should see a diminishing effect from the appliance stimulus earlier this year, potentially spelling modest (or less negative) sales growth in appliances. HHGregg currently trades at $22.87.