Cicuit City quarterly earnings preview for 4-4-07 by MS Money Premium

Filed under: Gate documents, Quarter City Stores (CC)

Circuit City Stores Inc (NYSE: CC)will be reporting on its fiscal fourth quarter tomorrow after months of dismal news from all sides. The plummeting cost of flat-panel TV sets has set the stage for from weak announcements from the consumer electronics retailer recently.

Last week's press release that bluntly stated it would fire 3,500 workers and replace many of them with lower-paid workers was a reminder of he job insecurity many face in the retail sector -- and that announcement will do Circuit City no good in terms of employee loyalty.

So what should the latest quarter look like for Circuit City? With up to 70 store closings and mass firings about to occur, the company is clearly taking bold steps to return to profitability, but for its latest quarter, the retailer is expected to post a figure of $0.63 EPS for the latest quarter on revenue of about $4.05 billion. But, all the bad news for Circuit City in its more recent quarter sank shares about 24% in the quarter.