This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RadioShack's Earnings Likely to Provide More Reasons for Worry

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 - Get Report) 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $437.39 0.76%
RSH $0.31 12.76%
AAPL $126.78 1.10%
FB $87.33 1.80%
GOOG $521.84 0.26%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs