Barclays Maintains an 'Underweight' on RadioShack (RSH); 2Q EPS Likely Hampered by Promotional Activity

Barclays maintains an 'Underweight' on RadioShack Corp. (NYSE: RSH), PT $12.

Barclays analyst says, "Expect quarterly results to be negatively impacted by the highly promotional environment: Last month, we lowered our 2Q EPS estimate from $0.39 to $0.37 in part to account for the company's "Buy More, Save More" accessory promotion, which started on June 1 and is expected to end on July 31. We believe this promotion likely had a negative impact on GM in 2Q and likely will lead to a negative GM impact in 3Q."

"Tough compares as wireless growth slows: We are forecasting 2Q comps of (1)%, versus a difficult 6.7% LY, including a tough 61.4% wireless compare. We anticipate total sales will increase 2.5% to $1.04 billion, with decelerated wireless growth partially offset by continued weakness in non-wireless categories, particularly personal electronics and accessory."

For more ratings news on RadioShack Corp. click here and for the rating history of RadioShack Corp. click here.

Shares of RadioShack Corp. closed at $12.48 yesterday.

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