RadioShack Corp on Tuesday posted a 19.5 increase in fourth-quarter profit that beat Wall Street estimates, due to cost-cutting and better gross margins, sending its stock up 18 percent.
The consumer electronics retailer, which faces intense competition from Best Buy Co (NYSE:BBY) and other chains, said net income rose to $101 million, or 77 cents a share, from $84.5 million, or 62 cents a share, a year earlier.
Sales declined for the sixth quarter in a row, sliding to $1.36 billion from $1.46 billion.
Analysts on average had expected a profit of 72 cents a share on revenue of $1.35 billion, according to Reuters Estimates.
RadioShack has been closing unprofitable stores and reducing staff since Julian Day, a turnaround veteran, became chief executive in 2006. ©reuters