Retail Analyst: Wireless Sales are Carrying RadioShack

According to analyst Michael Pachter at Wedbush Morgan, RadioShack (NYSE:RSH) is relying very heavily on wireless sales while the rest of the business is suffering.

Here’s Pachter’s bullet points for the earnings release:

  • RadioShack will report its Q1 2011 (ending March) results before market open on Monday, April 25. There will not be a conference call to discuss results.
  • We expect Q1:11 results to be in-line with our estimates for revenue of $1.06 billion and EPS of $0.35, compared with consensus for revenue of $1.07 billion and EPS of $0.36.
  • We expect RadioShack to maintain 2011 guidance for sales to increase low to mid-single digits and EPS of $1.60 — 1.90.
  • Supernormal wireless growth rates are not expected to continue long-term, but should help over the near-term.
  • RadioShack is expected to face increased wireless competition.
  • Maintaining our NEUTRAL rating and our 12-month price target of $16.