Radio Shack Expects Lower 2nd.-Qtr. Profit29 May, 2001 By: Hive News
Fort Worth, Texas-based RadioShack Corp. said fiscal second-quarter profit will fall more than expected because of slower sales of wireless telephones and computers in April and May, according to Bloomberg News.
The company forecast profit of 25 cents to 27 cents a share for the quarter ending June 30, less than the 34-cent average estimate of analysts polled by First Call/Thomson Financial. RadioShack earned $75.4 million, or 38 cents, in the year-earlier quarter.
RadioShack said sales of Verizon Wireless Inc. and Sprint Corp. telephone services weren't up to expectations and personal- computer sales were weak. Sales at stores open at least a year fell 2% in April and were little changed in May.
"Unless we have a huge, double-digit (sales) gain in June, we are headed for a big miss," chairman/c.e.o. Len Roberts told analysts and investors.
RadiosShack also said this year's per-share earnings from ongoing operations, which it didn't define, said Bloomberg, may decline by 10%.
RadioShack shares fell $1.02 to $32.85. The company made its announcement after the close of regular U.S. trading.