Estimates For RadioShack On The Rise

RadioShack Corporation

is having 3Q earnings anticipated by JP Morgan to be $0.39, over $0.30 last year and consensus of $0.35. In its research report, JP Morgan writes "On August 23rd, RSH announced that it had entered into an accelerated share repurchase program (

), to repurchase ~$300MM in common stock. After revisiting our model, we are adjusting our 3Q EPS estimate to $0.39 (previously $0.38) driven by the company's ASR. Our 2010 and 2011 EPS forecasts are $1.89 and $2.40, respectively (vs. consensus of $1.84 and $2.11 respectively). This represents roughly a 7MM share benefit in both 3Q and 4Q and then 2MM shares per quarter in 2011. Note, this leaves RSH with an estimated $400MM of cash at the end of 2011 vs. our estimate of ~$200MM in minimum cash." JP Morgan maintains its Neutral rating and has raised the price target from $25 to $26. RadioShack closed yesterday at $21.87.