RIMM Clobbered for Weak Guidance
Research in Motion (RIMM) shares are getting clobbered this morning after the company yesterday issued weaker-than-expected revenue guidance for the fiscal third quarter ending in November.
While Q2 results were mixed–revenue was a tad light, as net subscriber adds came in toward the low end of guidance, while EPS was a bit ahead of estimates–the Q3 outlook disappointed investors. The company said it sees revenue for Q3 of $3.6 billion to $3.85 billion, below the Street consensus forecast of $3.92 billion. RIMM also said it sees gross margin in the quarter of 43%, down about one point sequentially. And with average selling prices sinking, and many new handsets coming from other manufacturers, there are worries that gross margins will see more pressure in coming months.
