Wedbush Slashes Price Target on RadioShack (RSH), Sees Best Buy (BBY) Stealing Market Share
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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: 16 | New: 37
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Wedbush is reaffirming its Neutral rating on shares of RadioShack Corp. (NYSE: RSH), while slashing its price target from $15 to $8.
The company released preliminary Q4 results with actual earnings expected to be one third to 1 fourth of of the Street's and firm's expectations. RSH's management team noted the downside was due to weak Sprint postpaid wireless sales and changes to Sprint’s customer and credit models. Sales and same-store-sales look to be slightly above the firm's previous outlook.
RadioShack anticipates net income will fall in 2012 and has suspended its $200 million buyback program as a result. The company will still payout its $0.50/share annual dividend for the year.
An analyst at Wedbush comments, "We believe that the selection and quality of RadioShack’s non-mobile items continues to decline, as has its image. We think that RadioShack is now viewed by many as the retailer of choice for low-cost devices, while competitor Best Buy (NYSE: BBY) remains the preferred destination for the high-profile and high-margin devices."
For Q4 and FY11, the firm reduced its EPS estimates from $0.41 and $1.22 to $0.11 and $0.93. Wedbush also cut its Q1 and FY12 estimates from $0.34 and $1.50 to $0.12 and $1.00.
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For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $10.23 yesterday.
The company released preliminary Q4 results with actual earnings expected to be one third to 1 fourth of of the Street's and firm's expectations. RSH's management team noted the downside was due to weak Sprint postpaid wireless sales and changes to Sprint’s customer and credit models. Sales and same-store-sales look to be slightly above the firm's previous outlook.
RadioShack anticipates net income will fall in 2012 and has suspended its $200 million buyback program as a result. The company will still payout its $0.50/share annual dividend for the year.
An analyst at Wedbush comments, "We believe that the selection and quality of RadioShack’s non-mobile items continues to decline, as has its image. We think that RadioShack is now viewed by many as the retailer of choice for low-cost devices, while competitor Best Buy (NYSE: BBY) remains the preferred destination for the high-profile and high-margin devices."
For Q4 and FY11, the firm reduced its EPS estimates from $0.41 and $1.22 to $0.11 and $0.93. Wedbush also cut its Q1 and FY12 estimates from $0.34 and $1.50 to $0.12 and $1.00.
.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $10.23 yesterday.
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