RadioShack Earnings Sneak Peek

RadioShack Corporation (NYSE:RSH) will unveil its latest earnings on Tuesday, October 23, 2012. RadioShack is a retailer offering consumer electronic goods and services through its RadioShack store chain and non-RadioShack branded kiosk operations.

RadioShack Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 17 cents per share, a swing from net income of 15 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 8 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 16 cents during the last month. For the year, analysts are projecting net loss of 34 cents per share, a swing from profit of 95 cents last year.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting a loss of 21 cents per share against an estimate of net income of 3 cents per share. The quarter before that, it missed forecasts by 13 cents.

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A Look Back: In the second quarter, the company swung to a loss of $21 million (21 cents a share) from a profit of $24.9 million (24 cents) a year earlier, missing analyst expectations. Revenue rose 1.2% to $953.2 million from $941.9 million.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price fell $1.21 (-33.2%), from $3.65 to $2.44. The stock price saw one of its best stretches over the last year between August 30, 2012 and September 7, 2012, when shares rose for six straight days, increasing 20.3% (+49 cents) over that span. It saw one of its worst periods between May 25, 2012 and June 4, 2012 when shares fell for six straight days, dropping 13.5% (-67 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.79 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 3.22 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 88.7% to $975.2 million while assets rose 4.6% to $1.74 billion.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 5.2% in the first quarter after increasing in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 14 of 20 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $1.04 billion in revenue this quarter, a rise of 1% from the year-ago quarter. Analysts are forecasting total revenue of $4.39 billion for the year, a rise of 0.2% from last year’s revenue of $4.38 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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