Topeka Reaffirms Buy On HSN Following 2Q14 Results; Keeps $67 PT
In a research report released August 7th, Topeka Capital analyst Victor Anthony reaffirmed a Buy rating on HSN Inc. (HSNI) with a $67 price target, following the release of the company’s second-quarter report. The company reported revenues of $855.2mm, +5% YoY, were $18mm or 2% above Anthony’s $836.7mm estimate (3% ahead of consensus of $831.3mm) on strength at TV Shopping. Adj. EBITDA of $82.1mm (down 4% YoY/9.8% margin), missed Anthony’s estimate of $86mm or by 5% and was $1.1mm below the consensus of $83.2mm due to weakness at Cornerstone. GAAP EPS of $0.76 was $0.02 below Anthony’s estimate of $0.78 and $0.01 below the FacetSet consensus estimate of $0.77.
Anthony wrote, “The core TV Shopping business had a nice upside quarter as we expected. The bottom line miss was due to Cornerstone. Own the shares for improvements in TV Shopping and for an anticipated capital structure rationalization in the near future.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 18.5% and a 66.3% success rate. Anthony has an -0.3% average return when recommending HSNI, and is ranked #53 out of 3214 analysts.
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