ISI: hhgregg's 3Q11 In-Line with Pre-Release

According to a research report published earlier today, ISI says hhgregg Inc.'s (NYSE: HGG) fiscal 3Q EPS of $0.60 is in-line with the pre-released $0.60 on 1/10.

In the report, ISI commented, “Gross margin pressure drove operating margins down 240bps YoY. These results have similar elements to BBY's F3Q (top line growth, but double digit EBIT $ erosion). Our share data suggests that HGG's aggressive promoting has held share vs BBY and WMT in key categories, yet a 19% decline in EBIT $'s YoY shows that positive comps came at a cost. HGG's stock down 27% year-to-date may already discount some of the pain. Mgmt expects the margin pressure to continue through the rest of the year.”

ISI maintains its Hold rating and $12 PT on hhgregg, which is currently trading at $10.88.