The first quarter earning season is just starting, but we can already draw interesting conclusions based on the earnings beats and misses. Especially, the earnings of consumer electronics retailers seem to be confirming the trend that has been persistent the past couple of years.
This morning Radioshack (NYSE: RSH) posted a $0.06 loss per share versus the expectations of $0.05 profit. The stock has been hit hard and is currently down nearly 7%. Radioshack also posted lower than expected revenues of $1.01 billion, which is lower than its sales of $1.06 billion in Q1 2011.
Within the past couple of months the markets have been extremely volatile, as the global recession fears and concerns about the European debt crisis have shaken the investors’ confidence. The concerns over the slowing economy are also casting a shadow over the upcoming earnings season.
Several companies have lowered their revenue and EPS estimates for the rest of the year, which may signal a disappointing Q3 earnings season. Just in today’s premarket session, we saw The Scotts Miracle-Gro Company (NYSE: SMG) and Natus Medical (Nasdaq: BABY) announcing lower estimates.