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RadioShack's Earnings Likely to Provide More Reasons for Worry

Stocks in this article: RSH AMZN EBAY TMUS S VZ

NEW YORK (TheStreet) -- RadioShack (RSH) plans to report financial results for its fiscal first quarter before the opening bell Tuesday. Saying that RadioShack has struggled over the past couple of years would be a gross understatement.

Shares closed Friday at $1.47, down 2.7%, and have plummeted 43% year to date.

Although RadioShack has established a rich history as an electronics retailer over the past five decades, the emergence of Amazon (AMZN) and auction sites such as eBay (EBAY) have eroded RadioShack's in-store traffic and pressured its margins.

And when you factor in the company's high inventory levels, declining cash reserves and upcoming debt maturities, you have to ask how much time does RadioShack have left before it has to file for bankruptcy.

Management continues to make attempts to turn things around.

Last week, RadioShack announced that it had formed a partnership with hardware manufacturer PCH International.

PCH International's PCH Access unit helps start-ups manufacture and bring their products to market.

The RadioShack partnership, called RadioShack Labs, will make these products available in designated spaces at RadioShack stores.

It remains to be seen how much of a difference this new partnership will make in an Amazon/online-dominated world, though.

You can bet that analysts will ask plenty of questions about PCH International when RadioShack reports earnings Tuesday.

They'll also be asking what else management plans to do to stop the current bleeding.

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