by Christopher Freeburn | October 23, 2012 12:57 pm
RadioShack (NYSE:RSH) announced on Tuesday that it lost $47 million during the third quarter. 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), RadioShack is facing intense competition from online vendors, including Amazon (NASDAQ:AMZN). RSH has recently put a greater emphasis on selling mobile phones, including Apple‘s (NASDAQ:AAPL) iPhone, and wireless subscription plans from Sprint (NYSE:S), Verizon (NYSE:VZ) and AT&T (NYSE:T).
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 on an interim basis by CFO Dorvin Lively.
Source URL: http://investorplace.com/2012/10/radioshack-swings-to-loss-shares-rise/
Short URL: http://invstplc.com/1fwx61Y
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.