Member access

4-Traders Homepage  >  Shares  >  Nyse  >  RadioShack Corporation    RSH   US7504381036

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

RadioShack 4Q Profit Plunges 79%, In-Line With Dour Preview

02/21/2012 | 07:47am US/Eastern
   By Matt Jarzemsky and Mia Lamar 
   Of  
 

RadioShack Corp.'s (>> RadioShack Corporation) fourth-quarter profit fell 79%, in-line with company's January warning of weaker-than-expected performance, as the company's mobile phone business weighed on the bottom line.

The consumer-electronics retailer last month warned that changes in how Sprint Nextel Corp. (>> Sprint Nextel Corporation) deals with customers put a damper on phone activations. The company also cautioned that discounting and the relatively low margins it earns on smartphone sales hindered results.

The disappointing forecast heaped further doubt on RadioShack's mobile device-focused strategy. It faces competition from Best Buy Co. (>> Best Buy Co., Inc.) in that category and weak demand for other types of consumer electronics.

On Tuesday, RadioShack reported a profit of $11.9 million, or 12 cents a share, down from $57 million, or 51 cents a share, a year earlier.

Net sales rose 5.9% to $1.39 billion. The results met the company's January forecast of an 11- to 13-cent per-share profit on $1.39 billion in revenue.

Same-store sales increased 2.2%, roughly in-line with the company's forecast, on higher sales of tablets and mobile phones with contracts from AT&T Inc. (>> AT&T Inc.) and Verizon Wireless. Declining sales of Sprint and T-Mobile phones weighed on the result, RadioShack said.

Gross margin plunged to 34.8% from 41%. The company attributed the drop to low-margin smartphones and other mobile devices accounting for a larger share of sales, in addition to increased holiday discounting.

Mobile-device sales at U.S. company-operated stores jumped 16%. Meanwhile, sales of consumer electronics such as digital music players and GPS gadgets fell 30%. RadioShack's "signature" category, which includes headphones and PC and wireless accessories, saw a 1.1% decline.

Shares closed Friday at $7.88 and were inactive in recent premarket trading. The stock is down 50% the past year. U.S. stock trading was closed Monday in observance of Presidents Day.

-By Matt Jarzemsky and Mia Lamar, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com

React to this article
Latest news on RADIOSHACK CORPORATION
1d ago RADIOSHACK : Entry into a Material Definitive Agreement, Financial Statements an..
2d ago RADIOSHACK : Relaunches with Cyber Week Deals and Free Holiday Shipping
7d agoDJJana Partners Considers Nominating PetSmart Director Slate -- Update
7d agoDJJana Partners Considers Nominating PetSmart Director Slate
11/19 RADIOSHACK : Big Savings on Black Friday Deals Start Early at RadioShack
11/16 RADIOSHACK : Fort Worth Attorney Coby L. Wooten Obtains $897K Verdict on Behalf ..
11/13 RADIOSHACK : Fix It Here! Mobile Device Repair Service Now Available in 30 Houst..
11/12 RADIOSHACK : Launches Defense Mobile Service for Veterans, Military Service Memb..
11/10 RADIOSHACK : Defense Mobile Launches 4G Mobile Service and Veteran Benefits App ..
11/06 RADIOSHACK : Change in Directors or Principal Officers (form 8-K)
Advertisement
Chart
Duration : Period :
RadioShack Corporation Technical Analysis Chart | RSH | US7504381036 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF