Market Overview

RadioShack Down 33% After Earnings Miss

Shares of RadioShack (NYSE: RSH) are down nearly 33% after the company reported poor earnings yesterday.

Total net sales and operating revenues from continuing operations for the 2011 fourth quarter increased approximately 6% to $1.39 billion compared to $1.31 billion for the fourth quarter last year. Comparable store sales for company-operated stores increased approximately 2% during the 2011 fourth quarter. Consolidated gross profit as a percent of net sales in the 2011 fourth quarter is expected to be approximately 35%, compared to 41% in the 2010 fourth quarter. Diluted earnings per share for the 2011 fourth quarter are expected to be in the range of $0.11 to $0.13, compared to $0.51 per diluted share reported in the 2010 fourth quarter.

The decrease in gross margin in the 2011 fourth quarter, compared to the 2010 fourth quarter, 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.

Posted-In: Earnings News

 

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