The 10-second takeaway
For the quarter ended Sep. 30 (Q3), RadioShack missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share.
Margins dropped across the board.
RadioShack reported revenue of $1.00 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $1.04 billion on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $1.03 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 -$0.33. The 19 earnings estimates compiled by S&P Capital IQ forecast -$0.17 per share. GAAP EPS were -$0.47 for Q3 versus $0.00 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 36.0%, 680 basis points worse than the prior-year quarter. Operating margin was -4.2%, 760 basis points worse than the prior-year quarter. Net margin was -4.7%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is -$0.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 462 members out of 892 rating the stock outperform, and 430 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give RadioShack a green thumbs-up, and 142 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 $2.42.
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