RadioShack Misses Earnings, Beats Revenues - Analyst Blog

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RadioShack Corp. ( RSH ) posted mixed second-quarter 2013 financial results. Notably, the comparable store sales for the company-operated stores and kiosks (stores and kiosks that have been operational for at least a year) were up 1.3% in the reported quarter. This is a key retail performance indicator measuring growth from the existing sales locations. Comparable store sales were up for the first time since 2010.

GAAP net loss from continuing operations in second-quarter 2013 was $53.4 million or a loss of 53 cents per share compared with a net loss of $21 million or a loss of 16 cents per share in the year-ago quarter. Quarterly loss per share of 53 cents was significantly higher than the Zacks Consensus Estimate of a loss per share of 24 cents. Total revenue was $844.5 million, down 0.5% year over year. However, revenues surpassed the Zacks Consensus Estimate of $814 million.

Quarterly gross profit was $313.8 million compared with $340.2 million in the prior-year quarter. Gross margin was 37.2% compared with 40.1% in the prior-year quarter. Selling, general, and administrative expenses were $336.9 million, remaining same year over year. Operating loss was $41.4 million compared with $14.1 million in the year-ago quarter.

During the first half of 2013, RadioShack generated $63 million in cash from operations compared with $22.9 million in the year-ago period. Free cash flow, in the reported period, was $51.3 million compared with a negative $4.8 million in the prior-year period. At the end of the first half of 2013, RadioShack had $432 million in cash & cash equivalent compared with $537.5 million at the end of 2012. Total debt, at the end of the reported quarter, was $712.7 million compared with $777.7 million at the end of 2012. The debt-to-capitalization ratio was 0.50 compared with 0.45 at the end of 2012.

Segment-wise Results

U.S. RadioShack Company-operated store segment, which is the prime contributor to the total revenue, was down 0.5% year over year to $768.5 million. Operating income was $39.4 million, down 45.3% year over year. Other segment revenues decreased 0.5% year over year to $75.8 million. Operating income was $3.3 million, down 45% year over year.

Other Stocks to Consider

RadioShack currently has a Zacks Rank #5 (Strong Sell). While we prefer to avoid RadioShack until we see signs of improvement in the company's performance, other stocks in the electronics retail industry worth a look are hhgregg Inc. ( HGG ), Conns Inc. ( CONN ) and GameStop Corp. ( GME ). While Conns currently has a Zacks Rank #1 (Strong Buy), both GameStop and hhgregg carry a Zacks Rank #2 (Buy). 



CONNS INC (CONN): Free Stock Analysis Report

GAMESTOP CORP (GME): Free Stock Analysis Report

HHGREGG INC (HGG): Free Stock Analysis Report

RADIOSHACK CORP (RSH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CONN , GME , HGG , RSH

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