Lifted by sales of smartphones, RadioShack (NYSE:RSH) said Monday it grew its third-quarter profits by a stronger-than-expected 23%.
The electronics retailer said it earned $46 million, or 37 cents a share, last quarter, compared with a profit of $37.4 million, or 30 cents a share. Analysts had projected EPS of 35 cents.
Sales rose 6.2% to $1.05 billion, essentially matching the Street’s view of $1.04 billion. Same-store sales climbed 6.2%, but the company’s profit margin slid from 47.6% to 45.4%. U.S. company-operated stores posted a 6.6% rise in sales.
RadioShack’s third quarter was boosted by wireless sales, which soared 25.8%, offsetting a 12% decline in accessory sales and a 12.5% slide in personal electronics sales. Modern home sales fell 7.2% last quarter.
“In addition to the continued growth in our wireless business, we are encouraged by the improvements in our non-wireless product categories, including accessories and power,” CEO Julian Day said in a statement.
Despite the earnings and sales beat, RadioShack’s stock fell 2.5% to $22.24 ahead of Monday’s open. The stock had been up nearly 17% on the year as of Friday.