They are going to shutter 700 stores and their CEO lied on his resume?
Fourth-quarter earnings fell to $49.5 million, or 36 cents per share, from $130.9 million, or 81 cents per share, a year earlier.
According to Reuters Estimates, excluding 22 cents per share for the inventory write-down and a 2-cent charge for an accounting change, profit would have been 60 cents, which compares with the analysts' average forecast of 66 cents.
Sales rose 5 percent to $1.67 billion, compared with analysts' target of $1.62 billion.
I guess that sales figure was fairly decent though. That 22 cents is a one time deal but missing by 6 cents is big. I guess closing those stores should help the bottom line but I think Radio Shack is just getting their asses beat by the big box electronics retailers. Best Buy and Circuit City both had pretty good quarters but still Radio Shack misses by 6 cents.
This could be a decent short candidate simply because of the CEO controversy. It may get a bump if they fire him though. The new guy they pick needs to be good at a turn around play that will compete with some powerful competitors or we might see Radio Shack shutter more then 700 stores. If they keep the lying CEO Edmondson then all bets are off. Could we see a KKD style implosion of the stock?
No comments:
Post a Comment