The 10-second takeaway
For the quarter ended March 31 (Q1), RadioShack whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP loss per share increased. GAAP loss per share grew.
Gross margins grew, operating margins shrank, net margins dropped.
RadioShack tallied revenue of $849.0 million. The 14 analysts polled by S&P Capital IQ wanted to see a top line of $954.9 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $1.01 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 -$0.35. The 18 earnings estimates compiled by S&P Capital IQ averaged -$0.11 per share. Non-GAAP EPS were -$0.35 for Q1 against -$0.08 per share for the prior-year quarter. GAAP EPS were -$0.43 for Q1 compared to -$0.08 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 39.7%, 60 basis points better than the prior-year quarter. Operating margin was -2.0%, 220 basis points worse than the prior-year quarter. Net margin was -5.1%, 430 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $828.7 million. On the bottom line, the average EPS estimate is -$0.21.
Next year's average estimate for revenue is $3.86 billion. The average EPS estimate is -$0.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 435 members out of 890 rating the stock outperform, and 455 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give RadioShack a green thumbs-up, and 127 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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