RadioShack Corporation (NYSE:RSH) Down to New Annual Low on Disappointing 4Q Pre-Announcement and CEO Transition

RadioShack Corporation (NYSE:RSH) slid 11.30% to trade close at $15.62 after the company announced disappointing lower than expected preliminary fourth fiscal quarter EPS and the retirement of its CEO.

Scottsdale, AZ (prHWY.com) January 31, 2011 - RadioShack Corporation (NYSE:RSH) slid 11.30% to trade close at $15.62 after the company announced disappointing lower than expected preliminary fourth fiscal quarter EPS and the retirement of its CEO.

Shares of the company engaged in the retail sale of consumer electronics goods and services through the RadioShack store chain and non-RadioShack-branded kiosk operations went down to its new 52 week low of $15.31 in its today trading session, its 52 week high being $24.00. The stock traded with higher volume of 13.72 million shares, 6 times above the daily average volume of 2.19 million shares after opening at $15.98 and touching the intraday high of $16.00. At the current market price, the market capitalization of the stock stands at $1.78 billion with P/E of 8.80.

The Company announced preliminary fourth fiscal quarter EPS in the $0.50-$0.54 range versus consensus of $0.67 on revenue of $1.37 billion, compared with $1.36 billion consensus. Management attributed fourth fiscal quarter sales results primarily to weakness in wireless sales, while disappointing T-Mobile results, higher mix of lower margin wireless handsets, and incremental promotional and clearance markdowns related to seasonal sell-through and product transitions drove gross margin declines. The Company noted SG&A increases were driven by infrastructure investment supporting the Target Mobile kiosk roll-out.

Julian Day, Chairman and CEO of Radio Shack, announced his unexpected retirement, which will become effective during the week of May 16, 2011. Jim Gooch, who joined Radio Shack as chief financial officer a couple of months after Mr. Day's arrival in FY06, will immediately assume the position of president, as well as the CEO slot in May of 2011. As a reminder, Mr. Gooch previously worked with Mr. Day for approximately 10 years at K-Mart and Sears Holdings.

The Company's stores are located in shopping malls and strip centers, as well as individual storefronts. At December 31, 2009, RadioShack operated 4476 United States Company-operated stores under the RadioShack brand located throughout the United States, as well as in Puerto Rico and the United States Virgin Islands. Continue @ http://www.collegestock.com/blog/753-radioshack-corporation-nysersh-down-to-new-annual-low-on-disappointing-4q-pre-announcement-and-ceo-transition/

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