RadioShack Corp Earnings Cheat Sheet: Net Income Drops

S&P 500 (NYSE:SPY) component RadioShack Corporation (NYSE:RSH) reported a lower net income in third quarter, missing analysts’ estimates. RadioShack is a retailer offering consumer electronic goods and services through its RadioShack store chain and non-RadioShack branded kiosk operations.

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RadioShack Earnings Cheat Sheet for the Third Quarter

Results: Net income for the electronics store fell to $300,000 (0 cents per share) vs. $46 million (37 cents per share) a year earlier. This is a decline of 99.3% from the year earlier quarter.

Revenue: Rose 3% to $1.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: RSH reported adjusted net income of 15 cents a share. By this measure, the company fell short of the mean analyst estimate of 36 cents per share. Analysts were expecting revenue of $1.05 billion.

Quoting Management: Jim Gooch, president and chief executive officer of RadioShack Corp., said, “The third quarter continued to be a transition period for RadioShack as we prepared for the mid-September launch of Verizon Wireless and phaseout of T-Mobile products and services in our company-owned stores. At the same time, we continued our focus on improving our core business and introducing a more compelling assortment of brands and products to bolster our leadership in the wireless space. Despite the pervasive challenges in the retail economy, we believe we are well positioned to advance our mobility growth strategy in the quarters ahead.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the second quarter, net income fell 53% while the figure fell 29.9% in the first quarter and 24.7% in the fourth quarter of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 8 cents with net income of 30 cents versus a mean estimate of net income of 38 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 57 cents per share, up from 55 cents ninety days ago. At $1.58 per share, the average estimate for the fiscal year has fallen from $1.66 ninety days ago.

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(Source: Xignite Financials)