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RadioShack (RSH) Jumps On Better-Than-Expected Q3 Revenues, Wireless Gains

October 26, 2009 12:58 PM EDT
RSH Hot Sheet
Revenue Growth %: -4.7%

Financial Fact:
Discontinued operations, net of income taxes: 0

Today's EPS Names:
TARO, BRLI, TLB, More
The RadioShack Corp. (NYSE: RSH) reported third-quarter EPS of $0.30, missing the analyst estimate by 1 cent, while revenue for the quarter came in at $990 million compared to the consensus estimate of $960.97 million.

The company had a reported profit in the third-quarter of $37.4 million, down from $49.1 million in the year-ago quarter. The EPS fell from $0.38, to its 2009 third quarter results of $0.30.

Many changes for RadioShack came during the third-quarter including the company rebranding with the new identity, "The Shack." The new brand identity has been called a success by the company's CEO, Julian C. Day.

Also the company gained a new partnership with T-Mobile USA, a branch of Deutsche Telecommunication, to sell the wireless company's cellular services. During the third quarter, wireless sales rose by 40.2 percent, boosted by the addition of T-Mobile.

Day said these two changes are the key strategic efforts that continue to be primary areas of focus for the organization. "We now offer a broader range of choices to fit consumers' needs," Day said.

Analysts for Janney Montgomery Scott (JMS) maintain a Buy rating on RadioShack, citing that the drop from 2008 third-quarter is due to the lack of converter box sales post-digital transition. According to JMS the company has shown solid growth in wireless sales, along-side adapting to sales of the low-margin netbooks while still making profit.

In current market movement RadioShack is trading at 18.04, up 15.20 percent.

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