) - a popular consumer electronics specialty retailer - is set to
release its first-quarter 2013 results before the opening bell on
Apr 23, 2013.
In the last quarter, the company delivered a 300% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
RadioShack's consumer electronics retail business is on a
secular downtrend. Consumers now prefer purchasing online to
visiting retail stores. Loss of foot traffic has severely
impacted RadioShack's business. Moreover, an adverse product-mix
toward low-margin devices and a volatile economic scenario in the
U.S. are taking a toll on the company's revenues.
Despite these headwinds, continuous rollout of stores coupled
with signing of major franchise deals in the South-East Asian
countries, will improve profit for RadioShack going forward.
Moreover, termination of the Target contract may further improve
gross margin of the company, going forward.
Our proven model does not conclusively show that RadioShack is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for
this to happen. Unfortunately, this is not the case here as
This is because the Most Accurate estimate stands at a loss of 14
cents, while the Zacks Consensus Estimate is 11 cents. This leads
to an ESP of -27.27% for RadioShack.
Zacks Rank #3 (Hold):
RadioShack's Zacks Rank #3, decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -27.27% combined with a
Zacks Rank # 3 lowers the possibility of an earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Conns Inc. (
has Earnings ESP of +3.85% and carries a Zacks Rank #1 (Strong
) has Earnings ESP of +1.56% and carries a Zacks Rank #2
Research in Motion Limited
) has Earnings ESP of +500% and carries a Zacks Rank #2
RESEARCH IN MOT (BBRY): Free Stock Analysis
CONNS INC (CONN): Free Stock Analysis Report
RADIOSHACK CORP (RSH): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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