RadioShack Earnings: Here’s Why Shares are Up Now

RadioShack Corp. (NYSE:RSH) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3%.

RadioShack Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.63 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Decreased 6.55% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadioShack Corp. reported adjusted EPS loss of $0.63 per share. By that measure, the company missed the mean analyst estimate of $-0.05. It missed the average revenue estimate of $1.36 billion.

Quoting Management: Dorvin D. Lively, executive vice president, chief financial officer and chief administrative officer of RadioShack Corp., said, “Overall, the fourth quarter continued to be impacted by challenges similar to those of the first three quarters of the year. The most significant contributing factor to the decline in our performance was the postpaid wireless business which saw a decline in transaction volume across the year, combined with a lower margin rate. However, I am pleased with the progress we have made in improving other aspects of our business. The gross margin rate for all of our business, excluding mobility, was flat with 2011 with significant improvement in our consumer electronics business. We have improved and strengthened our high-margin signature platform, which generated sales growth in each quarter of 2012. Additionally, our no-contract phone and tablet businesses generated sales and gross profit improvement.”

Key Stats (on next page)…