said same-store sales rose 2% in the fourth quarter and that it remains comfortable with its lowered earnings outlook. The company also forecast 13% to 15% growth in earnings per share over the next three years.
The Fort Worth, Texas, consumer-electronics retailer earlier this month slashed its fourth-quarter outlook in order to reflect disappointing holiday sales and weaker-than-expected margins on its
products, radio-controlled toys and DVD accessories. The company said it expects to earn 58 cents to 60 cents a share in the quarter. Wall Street analysts, on average, currently expect the company to earn 59 cents a share, according to Thomson Financial/First Call.
Looking forward, RadioShack is projecting 13% to 15% EPS growth from 2003 to 2005, and 2% to 3% revenue growth. Gross margins are expected to rise 70 to 80 basis points. Computer sales are expected to show a 10% to 12% spike, due to the company's new emphasis on networking, digital imaging and portable computing as opposed to desktop computers and monitors. RadioShack's free cash flow is targeted at $215 million in 2003 and $235 million in 2004.
The company's shares were up 83 cents, or 4%, at $21.75 on the
New York Stock Exchange.