Earnings Preview: RadioShack Corp.

OVERVIEW: In the midst of a turnaround plan led by Chief Executive Julian C. Day, RadioShack is working to reinvigorate the Fort Worth, Texas electronics chain.

The company is moving to improve stores and add new products designed to entice shoppers away from big competitors like Best Buy Co. Inc. and Circuit City Stores Inc.

During the quarter, the company announced it was rolling out its own digital converter box for customers who want to still use analog television sets after a nationwide switch to digital television next year. The box will sell for $59.99.

BY THE NUMBERS: Analysts polled by Thomson Financial predict a profit of 26 cents per share on revenue of $909 million for the quarter.

ANALYST TAKE: Stifel Nicolaus & Co. analyst David Schick said he expects sequential revenue growth from the company, thanks to strong sales of GPS devices and video games. But sluggish wireless sales along with lower profit margins are expected to eat into RadioShack's profit.

"Weaker margins, due to merchandise mix shift and further lapping of inventory and expense savings initiatives, should limit bottom-line growth," he wrote in a research note to investors.

WHAT'S AHEAD: Same-store sales--an important metric for retailers--will provide investors with insight into how well RadioShack's efforts are working.

STOCK PERFORMANCE: During the quarter, which began April 1, shares fell about 25 percent to end the period at $12.27. Shares are down about 27 percent for the year.