RadioShack Corp. the number three U.S. consumer electronics retailer chain, has reported higher quarterly profit on strong sales of wireless phones and cost controls.
RadioShack, based in Fort Worth, TX, U.S., said profit in the first-quarter was U.S. $68.3 million, or $0.41 a share, up from $56.6 million, or $0.33 a share, a year earlier.
Analysts' average estimate was $0.38 a share, according to Reuters Research, a unit of Reuters Group Plc. On Feb. 19, 2004, the retailer forecast $0.36 to $0.38 a share.
"Wireless really led the charge," said Lehman Brothers analyst Alan Rifkin. "But in all fairness, every other aspect of their business continues to struggle." Rifkin listed computers, parts, batteries and accessories as among RadioShack's business components that are struggling.
Sales have edged up 2 percent to $1.09 billion.
Sales at stores open at least a year—a closely watched figure known as same-store sales—rose 3 percent, largely reflecting tougher year-over-year comparisons.
Analysts' same-store sales expectations ranged from down 1 percent to up 2 percent.
The company said sales from its wireless communications department jumped 24 percent.
RadioShack forecast second-quarter earnings per share of $0.38 to $0.40, in line with analysts' expectations. For the fiscal year, RadioShack said it sees earnings per share in the ,range of $1.99 to $2.04. Analysts' average forecast is $1.97, according to Reuters Research. (Reuters)
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