RadioShack profit drops in Q2, Verizon deal is bright spot
Dallas -- RadioShack Corp. reported Tuesday that net income for the second quarter dropped to $24.9 million from $53 million in the year-ago period. Sales decreased to $941.9 million, compared with $962.3 million a year earlier. Wall Street expected sales of $1.03 billion.
However, analysts responded positively to RadioShack’s news that it had signed a deal with Verizon Wireless to sell its postpaid and prepaid wireless products and services beginning Sept. 15, supplanting its current program with T-Mobile.
"While it is difficult to predict the pace of improvement we will see in our business as we add Verizon Wireless to our offerings, we are comfortable with the range of analysts' earnings estimates for the remainder of 2011," said president and CEO Jim Gooch.