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[Bucks4Buckeyes]

RSH is revealing some pretty poor numbers, just in NOV raised a lot of money & issued shares - and still will probably need to do it again. Earnings are due on FEB 9.

May be a good short opportunity. I'll be watching it.

UPDATE: RadioShack Sees 4Q Below Street View On Sprint Weakness
14 hours 31 minutes ago - Dow Jones News

--RadioShack warns fourth-quarter profit to fall much more than expected
--Company blames Sprint, discounting for the weak results
--RadioShack shares plunge after-hours

(Updates throughout with analyst comments and additional context.)

By Matt Jarzemsky
Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- RadioShack Corp. (RSH) warned its fourth-quarter profit will plunge far more than expected, blaming much of the softness on sales of phones with Sprint Nextel Corp. (S) contracts.
RadioShack said in a statement late Monday that "unexpected" changes in how Sprint deals with customers, such as how it assesses their credit approval, "resulted in fewer new and upgrade activations and a decline in Sprint postpaid revenues."
But the results also undermined elements of RadioShack's broader strategy, such as focusing on selling mobile devices and gadgets via kiosks in Target Corp.'s (TGT) stores. The consumer-electronics retailer said holiday promotions and the relatively low margins it earns on smartphone sales also weighed on its results.
Shares slid 20% to $8.19 in after-hours trading as the consumer-electronics retailer said it expects earnings between 11 cents and 13 cents a share. Analysts polled by Thomson Reuters most recently predicted 37 cents a share.
"The iPhone's crushing their margin [and] any non-wireless sales are highly promotional, so that's hurting their margin," UBS analyst Michael Lasser said.
He added that RadioShack gives Target a share of the profits for phones it sells at the retailer, while Target is the one selling the accessories for the devices.
"For RadioShack, it's permanently altering their profit structure, just the way the business is changing," Lasser said.
RadioShack benefited from an early push toward wireless devices. But its growth in that area has shown signs it is stalling of late, as larger rivals such as Best Buy Co. (BBY) increase their efforts in the space. Meanwhile, sales of other types of gadgets and electronics have been grim.
RadioShack expects to report gross margins tumbled to 35% from 41% in the year-earlier period, as a higher portion of its revenue came from certain smartphones that are less profitable for it to sell. Discounting also hurt margins. Sought-after smartphones such as Apple Inc.'s (AAPL) iPhone can offer lower margins for retailers because the high demand for such products give manufacturers and carriers leverage in supply agreements.
RadioShack projected sales of $1.39 billion, ahead of the $1.35 billion estimated by analysts. The company sees same-store sales growth of about 2%.
"We continue to make progress in the mobility sector with growth in sales of new iconic handsets, incremental sales growth from new partner Verizon Wireless, higher revenues from AT&T, and higher sales of tablets and e-readers," said President and Chief Executive Jim Gooch. "However, we are disappointed that these positives were overshadowed by significant declines in our Sprint business."
Gooch said the company remains confident in the health of its business absent the Sprint impacts. He said the company's key initiatives in 2012 include strengthening relationships with wireless carrier partners as it continues to expand its mobility business.
A Sprint representative wasn't immediately available for comment.
Sprint shares recently slipped 1.4% to $2.13 in after-hours trading. The company reports its quarterly results next week.
Pacific Crest analyst Steve Clement said while RadioShack's commentary isn't positive for Sprint, it also doesn't necessarily mean the quarter will be dismal. He said Sprint has been changing its credit terms with RadioShack in an effort to weed out lower-quality customers and reduce churn, or the number of customers who drop their contracts.
In addition, Sprint started offering the iPhone in October but didn't make the higher-end versions of the phone available at RadioShack until later in the period.
RadioShack said U.S. mobility platform sales rose 16% from a year earlier, while signature platform sales declined about 1%.
The company also said it plans to suspend share repurchases for the near term and to reinvest in its business and return value to shareholders through its quarterly dividend.
In October, RadioShack said its third-quarter earnings plunged 99% as costs tied to its transition to offering Verizon Wireless mobile devices masked a slight rise in revenue.

-By Matt Jarzemsky and Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [e-mail]
--Shara Tibken contributed to this story

(END) Dow Jones Newswires
01-30-12 1838ET
Copyright (c) 2012 Dow Jones & Company, Inc.