Earnings Preview: RadioShack 2nd quarter

Analysts expect wider loss, steep revenue decline in RadioShack's 2nd quarter

Associated Press

NEW YORK (AP) -- RadioShack reports its second-quarter results before the market opens on Tuesday, and analysts will want to see if new CEO Joe Magnacca's plan for RadioShack is taking hold in its early stages.

WHAT TO WATCH FOR: RadioShack has been facing slumping sales amid tough competition, as more consumers buy electronics from online merchants like Amazon, and discounters expand their own electronics offerings. In addition an effort to focus on smartphones and wireless plans ended up hurting margins more than it helped sales.

Magnacca, who arrived in February to replace James Gooch, who was CEO for only a year and a half, changed some merchandise offerings and revamped about 5 percent of the company's 4,400 stores to make them airier and less cluttered with more customer-friendly displays.

He also made a deal to sell electronics and accessories at some college bookstores.

Investors will also want an update on RadioShack's financial health. It said earlier this week it had $820 million in liquidity at the end of the first quarter and was meeting with advisers.

WHY IT MATTERS: RadioShack's results are an indicator of how Americans shop for electronics.

WHAT'S EXPECTED: Analysts expect a loss of 24 cents per share on revenue of $814.7 million.

LAST YEAR'S QUARTER: The company reported a loss of 21 cents per share on revenue of $953.2 million.

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