Radio Shack (RSH) earnings were reported after the bell today. RSH earnings for the first-quarter improved as Radio Shack sales rose 4%, topping Wall Street forecasts. Specifically, RadioShack earnings included first-quarter net income of $50.1 million or 39 cents a share, up 16% from $43.1 million, or 34 cents a share in the year ago period.
The consensus RSH earnings estimate was 36 cents a share, so Radio Shack earnings beat expectations by a significant margin. Also of note were net sales at RadioShack locations, which rose 4% to $1.04 billion from $1 billion a year earlier. Same-store sales for RSH stock were slightly better, with a 4.7% increase.
Radio Shack stock shares rose in after hours trading on this strong report. Investors have been bullish on RSH stock in 2010, bidding up this electronics retailer about 18% year to date. Radio Shack earnings fell short of Wall Street expectations last quarter, but this turnaround is adding even more momentum to RSH. As consumer confidence continues to improve and sales of electronics like computers and smart phones pick up, Radio Shack should see continued success in its sales and earnings across 2010.
Radio Shack operates almost 4,500 stores under the Radio Shack brand, referred to commonly as “the shack.” These electronics retail stores are located throughout the United States, as well as in Puerto Rico and the United States Virgin Islands. This domestic footprint ties RSH earnings closely to U.S. consumer habits, and improvements in spending and unemployment are a crucial part of success for RadioShack earnings.
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