HSN Earnings: Here’s Why Shares are Down Now

HSN, Inc. (NASDAQ:HSNI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.9%.

HSN, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.58% to $1.00 in the quarter versus EPS of $0.79 in the year-earlier quarter.

Revenue: Rose 2.92% to $982.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: HSN, Inc. reported adjusted EPS income of $1 per share. By that measure, the company missed the mean analyst estimate of $1.01. It missed the average revenue estimate of $995.44 million.

Quoting Management: “Our results for the quarter and the year at HSNi reflect our ability to capitalize on the shift in retail driven by technology, social networks and mobility,” said Mindy Grossman, CEO of HSN, Inc. “The Company achieved 7% sales growth and 27% EPS growth for the quarter and digital penetration increased 250 basis points to 47%, almost half of our total business. HSN experienced a number of key milestones, including 3% growth in its customer file–the largest in five years–and retention rates achieving 10-year highs. HSN’s mobile sales continued to accelerate, reaching $63 million in the quarter, nearly exceeding total mobile sales for all of 2011.”

Key Stats (on next page)…