Circuit City Stores
revised its third-quarter earnings forecast, citing lower-than-expected sales as a result of exiting the appliance market and the partial remodeling of its stores.
The electronics retailer said it expects to post third-quarter earnings of 13 cents to 18 cents a share, before remodeling, sales disruption and markdown costs, compared with 27 cents in the same period last year. A
First Call/Thomson Financial
poll of 16 analysts produced a consensus estimate of 16 cents a share for the company's third quarter.
The company also said it expects a third-quarter same-store sales decline in the mid single-digit range and a loss of 5 cents to 10 cents a share from its Circuit City business, including the costs.
The company forecast fourth-quarter earnings for the Circuit City business of 79 cents a share and full-year EPS of $1.13 to $1.18. Excluding remodeling costs and the exit from the appliance business, earnings for the full fiscal year would be $1.50 to $1.55 this year, compared with $1.60 last year. Analysts' expect the company to earn 96 cents a share in the fourth quarter and $1.66 for the year.
The company's Circuit City business contributes to the earnings of the Circuit City group, which also include a retained interest in
. The company continues to expect the CarMax business to contribute about 13 cents a share to the Circuit City group's earnings in the current fiscal year.
Shares of Circuit City were bid at $18 in preopen trading, down from Thursday's closing price of $21.44.