RadioShack: Profits are up

RadioShack: Profits are up

US based retailing giant RadioShack has come out with their latest revenue report and the company has posted better-than-expected first-quarter profit.

RadioShack benefitted from their cost cutting efforts as they helped offsetting the weakening sales in the market.

Goldman Sachs analyst Matthew Fassler wrote in a note about the RadioShack’s performance: “Results reinforce our view that CEO Julian Day can raise profitability to surprising levels, and that there is in fact a place in the U.S. consumer world for a convenience-based retailer of technology solutions.”

Company’s net income was up at $42.5 million, a massive improvement from $8.4 million, or 6 cents a share, a year earlier in the same period.

RadioShack further reported that their expenses in the quarter dropped 16.9 percent to $412 million. They managed to cut costs by removing extra jobs, cutting on advertising spending and other steps.

Lehman Brothers analyst Alan Rifkin was however cautious: “While cost-cutting efforts appear to be gaining traction, we await evidence of top-line improvement, which we believe is key to driving sustainability of the company’s model.”