shares were moving higher Tuesday after the company posted first-quarter earnings easily ahead of analysts' consensus estimate, due mostly to a 28% jump in cell-phone sales.
The company also said second-quarter earnings would come in at 38 cents to 40 cents a share, at least meeting the analyst consensus of 38 cents a share. RadioShack also reiterated its 2004 outlook, which is ahead of analysts' estimates.
In the first quarter, profit rose to $68 million, or 41 cents a share, in the quarter ended March 31, from $57 million, or 33 cents a share, in the prior-year period. Analysts were calling for 38 cents a share.
Sales increased 2% to $1.09 billion, while same-store sales were up 3%.
"Strong sales of wireless products and services combined with favorable profitability trends company-wide are positively impacting our bottom line," the company said.
RadioShack expects fiscal 2004 earnings to grow 13% to 15%, which the company said implies EPS of $1.99 to $2.04 and is predicated on a sales increase of 3% to 4% and gross margin gains of 50 to 70 basis points. The Wall Street consensus is $1.98 a share.
Shares of Fort Worth, Texas-based RadioShack were lately up 71 cents, or 2.2%, at $32.84.