Jan. 30 (Bloomberg) -- RadioShack Corp. plunged in extended trading after the consumer-electronics retailer suspended share repurchases and reported preliminary fourth-quarter earnings that trailed analysts’ estimates.
RadioShack declined 19 percent to $8.30 at 5:18 p.m. in New York after the markets closed. The shares dropped 47 percent last year.
Suspending stock buybacks “for the near term” will enable Radio Shack to spend on its businesses including mobility, Chief Executive Officer Jim Gooch said today in a statement. The chain also plans to continue paying a quarterly dividend.
The company bought back $11.9 million of shares in the fourth quarter. It had cash of about $590 million as of Dec. 31, compared with $569 million a year earlier. It plans to report full-year results Feb. 21.
Earnings probably fell to 11 cents to 13 cents a share last quarter, RadioShack said. Analysts projected 37 cents, the average of 19 estimates compiled by Bloomberg. It projected lower net income in 2012, compared to analysts’ estimates.
The company cited “underperformance” in the Sprint Nextel Corp. wireless business. The quarterly results were also hurt by promotions during the holiday period and “ongoing pressures” on consumer spending, it said.
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