Radioshack Swings to Loss, Shares Rise

by Christopher Freeburn | October 23, 2012 12:57 pm

Radioshack Swings to Loss, Shares Rise

RadioShack (NYSE:RSH[1]) announced on Tuesday that it lost $47 million during the third quarter[2]. It earned $300,000 in the same period last year. The adjusted loss came to 33 cents a share, worse than 17-cent loss Wall Street had expected, Reuters noted.

The company said that sales slipped from $1.03 billion last year, to $1 billion. Despite the bad news, shares of RadioShack moved up almost 3% in Tuesday midday trading.

Like many electronics retailers, including Best Buy (NYSE:BBY[3]), RadioShack is facing intense competition from online vendors, including Amazon (NASDAQ:AMZN[4]). RSH has recently put a greater emphasis on selling mobile phones, including Apple‘s (NASDAQ:AAPL[5]) iPhone, and wireless subscription plans from Sprint (NYSE:S[6]), Verizon (NYSE:VZ[7]) and AT&T (NYSE:T[8]).

Analysts said the worse-than-expected quarterly results highlighted the need to recruit a new¬†CEO who had “significant turnaround experience.” Last month, CEO James Gooch resigned and was replaced[9] on an interim basis by CFO Dorvin Lively.

Endnotes:
  1. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  2. during the third quarter: http://www.reuters.com/article/2012/10/23/us-radioshack-results-idUSBRE89M0HK20121023
  3. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  4. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  5. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  6. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  7. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  8. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  9. resigned and was replaced: http://investorplace.com/2012/09/radioshack-chief-bows-out-rsh-gooch/

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