FBR Capital Maintains a 'Market Perform' on RadioShack (RSH); Adjusting Estimates After Q1 Results
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Price: $0.24 --0%
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 1
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 1
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FBR Capital maintains a 'Market Perform' on RadioShack Corp. (NYSE: RSH), PT $18.
FBR analyst says, "RadioShack reported 1Q11A EPS that were generally in line with expectations, with EBIT margins contracting 202 bps to 6.72%. The high end of the 2011E EPS guidance range was revised downward, as RSH has slightly more visibility into its 2011E outlook, with one quarter behind it. 1Q is on average 20% of the annual EPS outlook, looking back in the past. Given that the Sam's Kiosks (in-house to Sam’s across 417 kiosks before April 1, 2011) go away for the first time in 2Q11E (about $0.10 per share in annual, EPS hit), we derive a run-rate of EPS on the heels of 1Q11A of about $1.60–$1.70 ($0.35 less say $0.02 per share from Sam’s and assuming roughly 20% of the outlook). So, management guidance of $1.60–$1.80 looks to be the best case achievable. The stock looks "fair" at current levels. We prefer Best Buy (NYSE: BBY)(Market Perform) amongst the consumer electronics sellers. Our conviction in the hardline retail space amongst the larger capitalization stocks still leans more significantly toward home improvement, with Outperform ratings on Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW)."
"We adjust our 2011 EPS estimate to $1.61 from $1.64, which compares
with the Street estimate of $1.72 prior to the company's earnings report.
Management revised guidance for 2011 to $1.60–$1.80 from $1.60–$1.90 per
share. For 2012, we adjust our EPS estimate to $1.65 from $1.75, versus the
Street consensus of $1.87."
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 $15.83 yesterday.
FBR analyst says, "RadioShack reported 1Q11A EPS that were generally in line with expectations, with EBIT margins contracting 202 bps to 6.72%. The high end of the 2011E EPS guidance range was revised downward, as RSH has slightly more visibility into its 2011E outlook, with one quarter behind it. 1Q is on average 20% of the annual EPS outlook, looking back in the past. Given that the Sam's Kiosks (in-house to Sam’s across 417 kiosks before April 1, 2011) go away for the first time in 2Q11E (about $0.10 per share in annual, EPS hit), we derive a run-rate of EPS on the heels of 1Q11A of about $1.60–$1.70 ($0.35 less say $0.02 per share from Sam’s and assuming roughly 20% of the outlook). So, management guidance of $1.60–$1.80 looks to be the best case achievable. The stock looks "fair" at current levels. We prefer Best Buy (NYSE: BBY)(Market Perform) amongst the consumer electronics sellers. Our conviction in the hardline retail space amongst the larger capitalization stocks still leans more significantly toward home improvement, with Outperform ratings on Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW)."
"We adjust our 2011 EPS estimate to $1.61 from $1.64, which compares
with the Street estimate of $1.72 prior to the company's earnings report.
Management revised guidance for 2011 to $1.60–$1.80 from $1.60–$1.90 per
share. For 2012, we adjust our EPS estimate to $1.65 from $1.75, versus the
Street consensus of $1.87."
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 $15.83 yesterday.
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