Carphone Warehouse sees FY EPS at top end of view

UK-based mobile phone retailer Carphone Warehouse Plc said it expects full-year earnings per share to be at the top end of 13.5 pence to 14.0 pence range.

The company, which comprises a 50 percent interest in the Best Buy Europe Group and a 47.1 percent interest in Virgin Mobile France, said it is raising its profit share forecast from Best Buy Mobile US to between 90 million pounds and 100 million pounds from prior range of 85 million pounds to 95 million pounds.

Whilst we remain cautious on the economic environment across Europe, we are well positioned to take advantage of the strong product cycle in mobile phones and the 'Connected World', the company said.

In the third quarter, Best Buy Mobile US connections grew 33.6 percent to 2.2 million. Best Buy Mobile now has 1,099 stores within a Best Buy store and 158 stand-alone stores and is well on track to have over 175 stores by the end of the current financial year.

Like-for-like sales growth at European stores was 0.7 percent, reflecting continued strong smartphone sales in the postpay segment, the company said.

At Virgin Mobile France, the company said net additions in the quarter were 74,000, driven by the launch of high-end smartphones, bringing the customer base to 1.76 million and placing the business on track to meet the guidance of 50,000-100,000 net adds for the full year.

Carphone remains one of few favoured UK retailing stories, with only valuation concerns currently weighing on market consensus opinion – viewed as a strong hold, said analyst Keith Bowman of Hargreaves Lansdown Stockbrokers.

Bowman said Carphone continues to justify its marked outperformance of the broader market – a 90pc gain over the last 6 months compares with a 16pc gain for the FTSE-100 index.

Shares of the company are up 1 percent at 389 pence at 09:11 am GMT Tuesday on the London Stock Exchange.