7 Radar Movers: RadioShack Gets Whacked 18%, Coinstar Falls 2% and Rent-A-Center Misses Top Line
Shares of McKesson Corp. (NYSE:MCK) jumped 3.25 percent after reporting a 94 percent jump in third quarter profits. The company earned $300 million ($1.20 per share)m compared to $155 million (60 cents) in the previous year’s third quarter.
RadioShack Corp. (NYSE:RSH) shares plummeted more than 18 percent in late market trading. The company announced it beat fourth quarter revenue expectations, but will miss profit estimates due to selling smartphones at lower prices. The Shack explained, “The Company’s results for the fourth quarter are due in large part to the underperformance of the Sprint (NYSE:S) postpaid wireless business and reflect further unanticipated changes in Sprint’s customer and credit models.” CEO Jim Gooch said the company is moving towards more profitable sales from Verizon (NYSE:VZ) and AT&T (NYSE:T).
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Coinstar, Inc. (NASDAQ:CSTR) shares fell 2 percent after the closing bell. President and COO Gregg Kaplan is taking a leave of absence due to a family member’s illness. He expect to return in April. Current CFO J. Scott Di Valerio will fill in for Kaplan. Shares of Netflix (NASDAQ:NFLX) and Amazon.com (NASDAQ:AMZN) edged slightly higher in extended trading.
Shares of Rent-A-Center Inc. (NASDAQ:RCII) declined more than 3 percent after reporting fourth quarter results. Net income for the rental and leasing services company increased to $49.3 million (83 cents per share), compared to $31.9 million (49 cents per share) in the same quarter a year earlier. Revenue increased 8.9 percent to $737.5 million, short of $741.1 million estimates. “We are generally pleased with our earnings for the fourth quarter and our overall results for the fiscal year 2011,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “While our top line was somewhat tempered a bit due to our core rent-to-own customers remaining focused on value, our customer demand remained strong.” Shares of Best Buy (NYSE:BBY) also declined in late trading.
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