Circuit City Charges Forward
By George Anderson
In case you hadn’t noticed, Circuit City is on something of a tear.
The consumer electronics chain has put together a plan that promotes better store level execution and customer service responsiveness to drive its top and bottom lines.
Bear Stearns analyst Dana Telsey is one who has noticed the marked improvement in Circuit City.
“The transformation of Circuit City into a good company from an underperforming one should drive further strong stock performance in a classic multi-year turnaround story,” she
wrote in a report to investors.
Sales of digital televisions and other popular consumer electronics should help Circuit City maintain its strong performance in 2006. Ms. Telsey expects Circuit City to earn
$1.02 a share in 2007 and $1.28 in 2008. She previously had the company’s earnings projected at 98 cents and $1.16 for the two years.
Moderator’s Comment: What is the Circuit City turnaround story as you see it? –
George Anderson – Moderator