RadioShack Corp. (NYSE: RSH) said Monday thet its first quarter net income dropped to $35.1 million, or 33 cents per share, compared with net income of $50.1 million, or 39 cents per share, reported for the same period last year. Total net sales and operating revenues for the 2011 first quarter increased 2.1% to $1.06 billion, compared to $1.04 billion for the 2010 first quarter. Analysts, on average, expected the company to report earnings of 35 cents a share on revenue of $1.07 billion.
"The 11% growth in our mobility business this quarter once again demonstrates our unique capabilities to navigate technology change, and to help customers select the right technology and connectivity solutions for their lives," said Chairman and Chief Executive Officer Julian Day. "Consumers increasingly rely on their mobile devices for a broad array of uses, from basic voice to highly bandwidth-intensive applications. Our focus continues to be on a needs-based selling approach that considers the requirements of an individual across a wide range of variables. Partnering with our customers to help them navigate these complex choices presents a clear opportunity for The Shack(R) and is one of the reasons we continue to prosper in this space."
Looking ahead, the lowered the upper-end of its fiscal 2011 earnings guidance. RadioShack currently expects full-year 2011 diluted EPS to be in the range of $1.60 to $1.80 per share (previous guidance was for full-year 2011 diluted EPS in the range of $1.60 to $1.90). RadioShack continues to expect total net sales and operating revenues will increase in the low- to mid-single-digit percent range in 2011, primarily driven by continued growth in the mobility platform. At this time, RadioShack continues to anticipate capital expenditures to be in the range of $100 million to $125 million in 2011.
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