RadioShack Earnings Cheat Sheet: Revenues Tick Higher 2%

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

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RadioShack Earnings Cheat Sheet for the First Quarter

Results: Net income for the electronics store fell to $35.1 million (33 cents/share) vs. $50.1 million (39 cents/share) a year earlier. A decline of 29.9% from the year earlier quarter.

Revenue: Rose 2.1% to $1.06 billion YoY.

Actual vs. Wall St. Expectations: RSH fell short of the mean analyst estimate of 35 cents/share. Estimates ranged from 31 cents per share to 40 cents per share.

Quoting Management: Jim Gooch, President and Chief Financial Officer, said, “Despite a challenging economy and tough weather conditions, our first quarter results were generally in line with our internal expectations. We expect the softness in our business to continue during the second quarter before we begin to see the benefits of our merchandising and sales initiatives improving both revenue and income trends in the back half of the year. In addition, growth in our mobility business will be aided by our tablet computer offerings, which are being introduced this month.”

Key Stats: From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $500.8 million from $908.1 million.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 24.7% from the year earlier quarter.

Over the last five quarters, revenue has increased 4.2% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 6.2% from the year earlier quarter.

Competitors to Watch: Best Buy Co., Inc. (NYSE:BBY), GameStop Corp. (NYSE:GME), hhgregg, Inc. (NYSE:HGG), CONN’S, Inc. (NASDAQ:CONN), Circuit City Stores, Inc. (CCTYQ), Funtalk China Hldgs. Ltd. (NASDAQ:FTLK), Rent-A-Center, Inc (NASDAQ:RCII), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Systemax (NYSE:SYX), Amazon.com (NASDAQ:AMZN) and Kesa Electricals plc (KESA).

Today’s Performance: Shares of RSH are trading at $15.80 as of April 25, 2011 at 11:48 AM ET, flat from the previous close.


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