RadioShack Earnings: Here’s Why the Stock is Falling Now

RadioShack Corp. (NYSE:RSH) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.62%.

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RadioShack Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.35 in the quarter versus EPS of $-0.08 in the year-earlier quarter.

Revenue: Decreased 15.8% to $849 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadioShack Corp. reported adjusted EPS loss of $0.35 per share. By that measure, the company missed the mean analyst estimate of $-0.11. It missed the average revenue estimate of $963.97 million.

Quoting Management: Joseph C. Magnacca, chief executive officer, said, “In the few weeks that I have been with the company, I have distilled several key learnings that have led me to focus on an initial set of priorities to begin driving our turnaround: building the right management team, reinvigorating the store experience, and jumpstarting our powerful brand. While I inherited an experienced management team, there were a couple of important roles to fill. Last week, we announced the hiring of a new chief marketing officer and a new senior vice president of store concepts.”

Key Stats (on next page)…

Revenue decreased 34.5% from $1.3 billion in the previous quarter. EPS decreased to $-0.35 in the quarter versus EPS of $0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.14 to a loss $0.17. For the current year, the average estimate has moved down from a loss of $0.42 to a loss of $0.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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