RadioShack Corp. (RSH), the consumer- electronics retailer, advanced the most in almost three-and-a- half years after saying it will offer Verizon Wireless products and services.
RadioShack rose $2.60, or 20 percent, to $15.69 at 4:02 p.m. in New York Stock Exchange composite trading, the biggest gain since Feb. 26, 2008. The shares have declined 15 percent this year.
Beginning Sept. 15, RadioShack will carry Verizon Wireless services and products, including handsets, at its 4,300 company- operated stores, according to a statement today. The retailer, based in Fort Worth, Texas, said it will end sales of T-Mobile USA Inc. products.
RadioShack’s second-quarter net income dropped 53 percent to $24.9 million, or 24 cents a share, from $53 million, or 41 cents, a year earlier, according to a separate statement today. Profit excluding items totaled 31 cents a share, missing the 37- cent average estimate of 16 analysts compiled by Bloomberg.
T-Mobile, based in Bellevue, Washington, previously decided to pull out of RadioShack in September “to increase the effectiveness of our retail network,” according to a statement on the company’s website.
“We are currently focused on higher-return national retailer opportunities and we expect to announce new channel growth in the coming weeks, which will more than double the number of RadioShack doors currently offering T-Mobile products and services,” T-Mobile said.
Verizon Communications Inc. (VZ), the second-largest U.S. phone company, rose 6 cents to $36.28 at 4:01 p.m. in New York Stock Exchange composite trading. Shares of the New York-based company have gained 1.4 percent this year.
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