RadioShack Plunges 18% After Pre-Releasing Q4 Earnings
RadioShack (NYSE: RSH) released its preliminary Q4 earnings results on Monday after the closing bell. The company expects earnings per share to be in a range between $0.11 to $0.13, which compares to current analysts' consensus EPS estimates of $0.37. Revenues are expected to be $1.39 billion, which is above current consensus revenue estimates of $1.35 billion. Comparable store sales for company-operated stores is expected to increase around 2% for Q4.
The company said that the decrease in its gross margin "reflects a shift in mix within mobility sales towards certain lower margin smartphones and mobile devices; a higher percentage of mobility sales in the overall revenue mix, largely driven by the Company's expansion of Target mobile centers; and the impact of a more promotional holiday season."
At last check, RSH shares had fallen more than 18% in Monday's after hours trading session to $8.37.
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