RadioShack Corporation (NYSE:RSH) has reported its fourth quarter earnings, posting $63 million in losses, or a loss of 63 cents per share. That’s compared to the consensus of $1.36 billion in revenue and a loss of 6 cents per share.
Nonetheless, the company’s stock is actually up 3 percent at this time, although that still isn’t enough to erase the post-market losses of 6 percent which came after closing bell on Monday.
RadioShack’s CEO stepped down in September, so new CEO Joseph Magnacca has a tough road ahead of him.
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Last year RadioShack reported $12 million in profits or 12 cents per share during the same quarter. The company’s overall sales also slumped a bit, falling to $1.3 billion from $1.39 billion last year. Same-store sales were also down 7 percent, while operating income fell 45 percent to $17 million.
The company did report a bit of good news in its latest earnings report. RadioShack Corporation (NYSE:RSH) said it increased its liquidity through the issuance of $175 million in new financing, which covers almost half of the company’s debt that’s coming due this year. The company also repurchased a large amount of the maturity at a discount last year.
However it could face new liquidity problems this year. The report said RadioShack Corporation (NYSE:RSH) may be forced to sell some of its assets or close some stores to further increase liquidity if business doesn’t improve by next year. The company said if operations are especially bad this year, then it might have to issue letters of credit.
According to Reuters, analysts believe the company needs to do further rebranding in order to better cater to the younger generation and to set itself up as a mobile phone destination.