Back to top

Analyst Blog

RadioShack Corp. 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 - Analyst Report), Conns Inc. (CONN - Snapshot Report) and GameStop Corp. (GME - Analyst Report). While Conns currently has a Zacks Rank #1 (Strong Buy), both GameStop and hhgregg carry a Zacks Rank #2 (Buy). 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%