Earnings per Share Are Down for RadioShack3 Jan, 2003 By: Hive News
RadioShack's fourth-quarter 2002 earnings per share won't be as high as earlier believed, in part because of weak sales of accessories for DVD players.
RadioShack announced its fourth-quarter 2002 earnings per share are likely to be $0.58 to $0.60, not the previous estimate of 63 cents to 68 cents.
"Though year-over-year sales changes improved every month during the quarter, sales were consistently a little lower than our plan throughout the three-month period," said Leonard Roberts, chairman and CEO. "In addition, gross margin trends, beginning in November, aggravated the earnings picture."
Other items with weaker-than-anticipated sales that hurt RadioShack's earnings were: Sprint PCS products and service beginning in November, nonmicro radio-controlled toys, and specialty batteries tied to radio-controlled toys.
RadioShack still expects 13 percent to 15 percent annual earnings-per-share growth from 2003 to 2005.