RadioShack Corp. (NYSE: RSH) reported first-quarter 2013 results before markets opened this morning. The electronics retailer posted an adjusted net earnings per share (EPS) loss of $0.35 on $849 million in revenue. In the same period a year ago, the company reported an EPS loss of $0.05 on revenues of $913 million. First-quarter results also compare to the Thomson Reuters consensus estimates for an EPS loss of $0.11 and $964 million in revenues.
The electronics retailer did not have anything to say about guidance for the rest of the year, but the Thomson Reuters consensus calls for a full-year EPS loss of $0.43. The consensus revenue estimate calls for a total of $3.95 billion. Based on first-quarter results, the net losses are shaping up to be far worse and revenues are likely to be short of that target as well.
On a GAAP basis, RadioShack posted an EPS loss of $0.38, which includes $8.5 million the company lost on its deal with Target Corp. (NYSE: TGT) before RadioShack canceled the agreement in mid-January.
The company’s CEO, Joseph C. Magnacca, took over in mid-February. His reputation as a turnaround specialist presumably landed him the job, but he really has got his work cut out for him. Here are some of his comments on the first quarter and the quarters ahead:
In the few weeks that I have been with the company, I have distilled several key learnings that have led me to focus on an initial set of priorities to begin driving our turnaround: building the right management team, reinvigorating the store experience, and jumpstarting our powerful brand. … We are rolling out a new brand image, and you will start seeing changes in our branding and advertising soon. … We have a powerful brand that has stood the test of time over nine decades and has a large, loyal customer following. We have strong relationships with leading vendors and a portfolio of trusted private brands that offer highly innovative technology products. We have a vast network of more than 4,300 company-operated stores and approximately 1,000 dealer outlets across the U.S. We have an established international presence in more than 25 countries, including 270 company-operated stores in Mexico. … The pace of our initiatives will vary, but each of the initiatives will contribute to bringing RadioShack back to the forefront of our customers’ minds and to improving our financial performance and profitability.
Is this a turnaround strategy or a “For Sale” sign? About the only thing that gives RadioShack stock a boost any more is a rumored buyout. More than 2.7 million shares of the firm’s stock trade hands every day, and the shares have bounced off recent lows of around $2. They remain well below a 2010 high of more than $20.
RadioShack’s shares are down more than 2.5% in premarket trading this morning, at $3.06 in a 52-week range of $1.90 to $6.37. Thomson Reuters had a consensus analyst price target of $2.60 before today’s report.