RadioShack Earnings: Swinging to a Loss, Shares Fall Hard

S&P 500 (NYSE:SPY) component RadioShack Corporation (NYSE:RSH) dropped to a third quarter loss, but results topped expectations. 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 Corporation Earnings Cheat Sheet

Results: Reported a loss of $47 million (47 cents per diluted share) in the quarter. RadioShack Corporation had a net income of $300,000 or 0 cents per share in the year-earlier quarter.

Revenue: Fell 3.1% to $1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadioShack Corporation beat the mean analyst estimate of 3 cents per share. It beat the average revenue estimate of $971.5 million.

Quoting Management: Dorvin D. Lively, interim chief executive officer of RadioShack Corp., said, “Overall, our business performed below expectations. I am most disappointed in our post-paid mobility business where we saw a continued decline in margin performance. However, I am pleased with the progress we are making in improving and driving growth in our high-margin Signature platform, which generated its third consecutive quarter of sales growth and our pre-paid mobility business, which included the launch of the RadioShack branded line of phones. Importantly, we took action to reduce our overall SG&A cost structure during the quarter.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with a loss of 8 cents versus a mean estimate of net income of 5 cents per share.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 1.2% to $953.2 million in the second quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 14 cents per share to 8 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At 30 cents per share, the average estimate for the fiscal year has fallen from 59 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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