Palm: Could Fiscal Q1 Hold an Upside Surprise?

July 28, 2008 at 1:05 pm PT

Could Palm (PALM) post an upside surprise in its fiscal first quarter ended August?

RBC Capital’s Mike Abramsky raises that possibility in a research note this morning. Abramsky notes that in the company’s 10-K filed on Friday, Palm disclosed a Q4 backlog of $238 million, up from $185 million one year earlier, and $121 million two years earlier. He writes that past precedent finds Q1 revenues have been 1.6x-1.9x Q4 backlog. Use the lower number and you would get $413 million, or well above the current Street consensus of $324 million. Abramsky says that would imply a loss for the quarter of four cents a share, versus the Street’s estimate of a loss of 18 cents.

Read the rest of this post

Tagged with: Barrons, Eric Savitz, frontpage, Mike Abramsky, Palm, RBC Capital, Tech Trader Daily

comments so far. Add yours.

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.