Tweeter Home returns to 2Q profit
Electronics retailer Tweeter Home Entertainment Group Inc. said Thursday it returned to a profit in the first quarter as revenue grew 3 percent and margins improved.
The company earned $332,000, or 1 cent per share, compared to a loss of $27.4 million, or $1.11 per share, a year earlier. Revenue grew to $187.2 million from $182 million.
Analysts expected Tweeter to post a loss of 7 cents per share on revenue of $185.9 million, according to Thomson Financial.
Gross profit grew 220 basis points and selling, general and administrative expenses fell 240 basis points.
"The improvement in gross margin was the result of continued growth of the installation and service businesses, improved product margins and increased vendor funding year over year," Chief Executive Joe McGuire said in a statement.
Tweeter shares rose $1 cents, or 12.7 percent, to $8.89 in morning trading on Nasdaq. The stock has traded between $2.26 and $9.22 over the past 52 weeks. (AP)
