Updated from 9:28 a.m. EDT
, the nation's largest consumer electronics retailer, on Tuesday said second-quarter earnings per share rose 27% and topped Wall Street's expectations by 2 cents a share, riding on consumer interest in Internet access and digital products.
RadioShack said earnings for the quarter ended June 30 were $75 million, or 38 cents a share, up from $61.6 million, or 30 cents a share, in the second quarter of 1999. Analysts expected 36 cents a share, according to a poll by
First Call/Thomson Financial.
Total sales were $1 billion, up 15% from $887 million in the comparable period a year ago.
The Fort Worth, Texas-based company said products in its computer, audio/video, direct-to-home satellite and digital wireless categories saw sales increases and led the quarter's gains.
"As we look ahead, we anticipate continued strength in the digital product cycle, led by an explosion of consumer interest in digital audio/video products and in broadband Internet access," said Len Roberts, chairman, president and chief executive officer.
Roberts said the fall launch of the Microsoft Internet Center, a stand-alone kiosk to demonstrate and sell broadband services within existing RadioShack stores, will place RadioShack in a position to guide consumers through the complexities of the Internet.
With about 7,100 stores as well as an online catalog, RadioShack already leads the U.S. in sales of wireless phones, telecommunications products and electronic parts and accessories, the company said.
The company may soon face closer competition:
said Tuesday that it plans to
exit the consumer appliances industry to focus on electronics.
Shares of RadioShack closed Wednesday up 3 9/16, or 6%, at 60 1/4.