RadioShack 3Q Profit Up Slightly
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FORT WORTH, Texas (AP) _ RadioShack Corp. Tuesday said third-quarter net income rose 2.5 percent, but sales faltered.
The consumer-electronics chain reported net income of $44.9 million, or 25 cents a share. Analysts had expected earnings of 24 cents a share.
Last year, the company earned $43.8 million, or 23 cents a share, including layoff costs and other charges. Excluding those costs, the company earned $52.1 million, or 27 cents a share.
Revenue fell 3.1 percent to $1.05 billion in the latest quarter, from $1.08 billion.
Same-store sales, or sales at stores open at least a year, were flat, though sales of wireless-communications products rose nearly 9 percent.
The Fort Worth, Texas, company warned in August that sales had deteriorated dramatically. Before that, RadioShack had expected to report earnings of 33 cents a share and sales growth of 2 percent to 3 percent for the third quarter.
Third-quarter gross margin as a percentage of sales improved to 49.8 percent, and the company issued an optimistic outlook for the long term.
RadioShack expects earnings per share to grow 13 percent to 15 percent from 2003 to 2005, based on sales growth of 2 percent to 3 percent as well as gross margin improvement and a share-buyback program.
In morning trading on the New York Stock Exchange, shares of RadioShack were up $1.13, or 5.4 percent, at $22.26.