RadioShack Earnings: Here’s Why the Stock is Rising Now

RadioShack Corp. (NYSE:RSH) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.83%.

RadioShack Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.53 in the quarter versus EPS of $-0.21 in the year-earlier quarter.

Revenue: Decreased 11.35% to $845 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadioShack Corp. reported adjusted EPS loss of $0.53 per share. By that measure, the company missed the mean analyst estimate of $-0.24. It beat the average revenue estimate of $815.84 million.

Quoting Management: Joseph C. Magnacca, chief executive officer, said, “While the second quarter presented a number of challenges, it is noteworthy that we generated comparable store sales growth for the first time since 2010, and increased sales for the sixth consecutive quarter in our high-margin signature platform of products. In addition, we made progress on the initiatives we outlined last quarter in repositioning our branding, opening a new concept store, streamlining our product assortment, and entering new strategic partnerships.”

Key Stats (on next page)…

Revenue decreased 0.47% from $849 million in the previous quarter. EPS decreased to $-0.53 in the quarter versus EPS of $-0.35 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.25 and has not changed. For the current year, the average estimate has moved down from a loss of $0.62 to a loss of $0.75 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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