RadioShack Corp. (NYSE: RSH) this morning reported second-quarter results of a net loss of $0.21 on $953.2 million in revenue. Earnings per share (EPS) dropped from $0.24 in the same period a year ago, while revenue was up from $942 billion. The results compare to the Thomson Reuters consensus estimates for EPS of $0.03 and $970.35 million in revenue.
The electronics retailer had nothing to say about guidance for the rest of the year, but the Thomson Reuters consensus for full-year EPS is $0.28. The consensus revenue estimate calls for a total of $4.44 billion.
The company’s CEO noted:
Overall, our business performed below expectations during the second quarter. We were disappointed in our gross margin rate performance, as the initiatives we have under way have not yet generated enough momentum to improve the trend.
The company’s gross margins in the second quarter fell to 37.8% from 45.9% in the same period a year. RadioShack attributed the collapse to a customer shift to lower margin smartphones.
RadioShack’s shares are trading down more than 23% in the premarket this morning, at $3.01 below a 52-week range of $3.46 to $16.25. Thomson Reuters had a consensus analyst price target of $4.73 before today’s debacle.