The 10-second takeaway
For the quarter ended March 31 (Q1), RadioShack missed estimates on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
RadioShack reported revenue of $1.01 billion. The 17 analysts polled by S&P Capital IQ hoped for a top line of $1.06 billion on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.08. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.08 for Q1 compared to $0.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.1%, 530 basis points worse than the prior-year quarter. Operating margin was 0.2%, 610 basis points worse than the prior-year quarter. Net margin was -0.8%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $989.3 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $4.55 billion. The average EPS estimate is $0.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 478 members out of 855 rating the stock outperform, and 377 members rating it underperform. Among 223 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give RadioShack a green thumbs-up, and 112 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RadioShack is hold, with an average price target of $8.41.
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