RadioShack beats Wall St forecasts
ELECTRONICS chain RadioShack yesterday posted third-quarter sales that topped Wall Street expectations, helped by its push into mobile phones, sending its shares up 16 per cent to a year high.
Net sales totaled $990m (£606m), well ahead of average Wall Street forecasts of $961.7m. While profit was slightly below estimates, falling to $37.4m from $49.1m, the top line performance revived confidence in a chain that has been hit by a pullback in consumer spending and competition from the likes of Best Buy.
“Our financial performance improved in the latter part of the quarter, primarily driven by our strong mobility business combined with an economy showing some signs of potential stabilization,” chief financial officer Jim Gooch said.
The retailer recently signed a deal with wireless carrier T-Mobile USA and is now focusing more on selling both handsets and air time as well as popular electronics products such as iPods.