RadioShack Goes Negative

RadioShack (NYSE: RSH  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RadioShack missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
RadioShack recorded revenue of $1.30 billion. The 19 analysts polled by S&P Capital IQ predicted sales of $1.36 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $1.39 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 -$0.60. The 19 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS were -$0.60 for Q4 against $0.12 per share for the prior-year quarter. GAAP EPS were -$0.63 for Q4 against $0.12 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 34.5%, 30 basis points worse than the prior-year quarter. Operating margin was 1.6%, 70 basis points worse than the prior-year quarter. Net margin was -4.9%, 580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is -$0.39.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 443 members out of 891 rating the stock outperform, and 448 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give RadioShack a green thumbs-up, and 133 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 $2.26.

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