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RadioShack Whiffs on Revenues

By Seth Jayson – Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

RadioShack (NYSE: RSH) reported earnings on April 23. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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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. 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.

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