The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RadioShack missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
RadioShack recorded revenue of $1.30 billion. The 19 analysts polled by S&P Capital IQ predicted sales of $1.36 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $1.39 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 -$0.60. The 19 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS were -$0.60 for Q4 against $0.12 per share for the prior-year quarter. GAAP EPS were -$0.63 for Q4 against $0.12 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 34.5%, 30 basis points worse than the prior-year quarter. Operating margin was 1.6%, 70 basis points worse than the prior-year quarter. Net margin was -4.9%, 580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is -$0.39.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 443 members out of 891 rating the stock outperform, and 448 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give RadioShack a green thumbs-up, and 133 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 $2.26.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of RadioShack. The Motley Fool is short RadioShack. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.