RadioShack Corporation

RadioShack Corporation (RSH - Analyst Report), the electronics retailer, surprised on estimates by 54.55% in the first quarter as flat-panel televisions continued to sell. The company has surprised 3 out of the last 4 quarters by an average of 14.76%. RSH is trading with a forward P/E of just 9.9.

Company Descriptionn

RadioShack is an electronics retailer with about 4,400 company-operated stores, 1,400 dealer outlets and 700 wireless phone kiosks throughout the U.S. as well as 200 company-operated stores in Mexico.

RadioShack Grew Revenue by 5.6% in the First Quarter

While many other retailers struggled, RadioShack managed to increase revenue by 5.6% in the first quarter on the strength of the wireless business, flat-panel televisions, and sales of digital converter boxes.

The company saw declines in sales of GPS, wireless accessories, digital cameras and digital music players.

Same store sales for company-operated stores and kiosks was up 5% from the first quarter of 2008.

Net income climbed 13% to $43.1 million, or 34 cents per share, from $38.8 million, or 30 cents, in the year ago period. This easily surprised on Wall Street estimates by 54.55%, or 12 cents a share. Analysts expected only 22 cents.

Consensus Estimates Jump

RadioShack did not provide guidance for the rest of the year when it released its first quarter results in April but covering analysts have been bullish on the company due to the big first quarter surprise.

Second-quarter consensus estimates rose 6 cents to 29 cents in the last 2 months. 2009 full-year estimates surged nearly 19% to $1.38 from $1.16 per share in the last 60 days with 1 out of 16 covering analysts raising in just the last week.

Value Fundamentals

RadioShack is a Zacks #1 Rank (strong buy) stock. It has a price-to-book of 1.85 and a PEG ratio of 1.0. The company also has an outstanding 5-year return on equity (ROE) of 29.24%.

Additionally, RSH pays a dividend with a current yield of 1.80%. RadioShack is expected to report second-quarter results on July 16.

Read the full analyst report on RSH