RadioShack Down Over 30% on Disappointing Earnings

RadioShack Corporation

is trading lower on the session following its Q2 earnings announcement. The company reported an EPS of $-0.21 vs $0.03 estimates and revenues of $953.2 million vs $970.35 million estimates. RadioShack also announced it will suspend its dividend. Jim Gooch, president and chief executive officer of RadioShack Corp., stated, "Overall, our business performed below expectations during the second quarter. We were disappointed in our gross margin rate performance, as the initiatives we have under way have not yet generated enough momentum to improve the trend. However, we were pleased with the sales growth generated in the mobility category of our business. Importantly, we saw incremental improvement throughout the quarter as we successfully connected with our customer base and drove sales growth in this key category through effective promotions and the expansion of our Target Mobile centers. We are also seeing continued stability and improvement in the signature category. Our primary operating focus continues to be on stabilizing gross margins and aggressively managing our cost structure." RadioShack is currently trading at $2.51, a loss of $1.14 or 31.23%