Earnings Preview For RadioShack Corporation (RSH, GS)

RadioShack Corporation RSH is expected to publish its Q1 results after the markets close on Monday, April 25. Analysts are expecting earnings per share of $0.34. The estimate has been systematically lowered over the previous months, however. Three months ago, analysts were expecting $0.44 per share, before lowering the EPS to $0.39 60 days ago and $0.36 a month ago. RadioShack Corporation, a Texas-based company, is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. The Company has two segments: U.S. RadioShack company-operated stores and kiosks. The former offers a selection of relevant technology products, including mobile devices, accessories, and services, as well as items for personal and home technology and power supply needs. Its kiosk locations offer a selection of mobile phones, accessories and related services. It also has operations outside the United States, namely in different parts of Europe, Africa and South America. It currently employs around 36,000 people. Goldman Sachs GS analysts have recently put a Buy rating on RadioShack. Its shares rose by 0.5% today to trade around $15.9x. It has been a very good month so far for RadioShack, with its shares gaining 13%. Investors will be hoping for strong results if RadioShack's shares are to reach $18, a target set by Goldman Sachs. This is a clear reversal of fortunes for RadioShack, whose shares were one of ten worst performing S&P 500 stocks until late March, according to some analysts. Earnings per share is still expected to go down on the yearly basis in the first two quarters this year, before gaining pace in the second part of the year. For the whole year, RadioShack's earnings per share is still expected to grow by 2.4%, however. This surge in activity in the second part of the year is probably going to bring some confidence to investors. This confidence can be overturned if the Monday results fall below market expectations. This would be the second consecutive quarter in which RadioShack cannot meet market expectations, after reporting Q4 2010 earnings per share 3.8% below analysts' expectations.