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RadioShack (RSH) Q1 Results Miss the Street, Outlook Seems Weak

April 25, 2011 3:42 PM EDT
RadioShack Corp. (NYSE: RSH) shares have fluctuated between positive and negative territory Monday following first-quarter results from the Fort Worth, TX-based electronics retailer.

Net income in the quarter was $35.1 million, or $0.33 per share, a 30 percent drop from the $50.1 million reported in the same quarter last year.

Revenue for RadioShack increased 2.1 percent from $1.042 billion to $1.063 billion. Same-store sales were down 0.6 percent in the quarter.

Analysts on Wall Street were looking for RadioShack to report EPS of $0.35 on sales of $1.07 billion.

An 11 percent increase in RadioShack's Mobility segment was not enough to offset the 14.8 percent decrease in Consumer Electronics (led by TVs, digital music players, and others), as well as sales decreases in Signature (media storage, TV antennas).

Looking ahead, RadioShack lowered the top-end of its FY11 EPS outlook, from $1.60 - $1.90 to $1.60 - $1.80. The Street is looking for FY11 EPS of $1.72. RadioShack continues to expect total net sales and operating revenues to increase in the low- to mid-single-digit percent range in 2011.

President and CEO Jim Gooch commented, "We expect the softness in our business to continue during the second quarter before we begin to see the benefits of our merchandising and sales initiatives improving both revenue and income trends in the back half of the year. In addition, growth in our mobility business will be aided by our tablet computer offerings, which are being introduced this month [April]."

RadioShack shares are trading 0.4 lower Monday afternoon.


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