RSH - 22.45- great earnings- fortunately out of position
May revisit as SSS continue declining going into slumping economy
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RadioShack 4Q Profit Climbs 64 Percent
Tuesday February 27, 8:11 am ET
RadioShack Fourth-Quarter Earnings Climb 64 Percent to $84.5 Million on Lower Costs
FORT WORTH, Texas (AP) -- Electronics retailer RadioShack Corp. said Tuesday its fourth-quarter profit climbed 64 percent on lower costs despite a drop in revenue.
Earnings grew to $84.5 million, or 62 cents per share, in the three months ended Dec. 31 compared with $51.2 million, or 38 cents per share, in the year-ago period.
Total operating expenses declined to $519.3 million from $604.5 million a year ago. The company's interest expense slipped to $11 million from $14.1 million.
Quarterly revenue dropped 13 percent to $1.46 billion from $1.67 billion in the previous year.
Analysts surveyed by Thomson Financial were looking for net income of 43 cents per share on sales of $1.47 billion.
Same-store sales, or sales at stores open at least a year, slid 7.7 percent when compared with the prior year. Excluding an income statement reclassification, same-store sales fell 5.5 percent.
RadioShack said the drop in same-store sales was primarily due to lower sales in postpaid wireless and personal electronics, partially offset by increases in prepaid wireless sales, MP3 players and accessories.
"Our team put forth a tremendous effort executing our plan during the fourth quarter. We have made great progress in some areas, while other areas such as the wireless business remain a challenge," Chairman and Chief Executive Julian Day said in a statement. |
