BlackBerry Maker: Get Thee Hence, RIM Reaper
Are Research in Motion’s best days behind it? The analysts that have been downgrading the company’s stock over the past few months seem to think they are (six cut their targets this month alone and RIM’s shares are down 40 percent since March 29). But RIM’s latest financials may win back a little of their confidence. Reporting second quarter earnings after market close today, the BlackBerry maker posted a profit that topped Wall Street estimates.
RIM (RIMM) earned $1.46 a share during the quarter, compared with $1.03 a share this time last year. Sales were $4.62 billion, up from $3.53 billion in the same period last year. Analysts were expecting earnings of $1.35 per share on revenue of $4.4 billion, according to Thomson Reuters.
RIM shipped 12.1 million BlackBerrys during the quarter, over 45 percent more than it did in the same quarter last year. Meanwhile, its BlackBerry subscriber base grew 56 percent over the prior year to 50 million.
Impressive, but not nearly as much so as the company’s guidance. For the third quarter, RIM sees revenue of $5.3 billion to $5.55 billion and profits of $1.62 to $1.70 a share, well above the $4.83 billion and $1.39 the Street is looking for.
“RIM set another new record in the quarter by shipping over 12 million BlackBerry smartphones,” RIM co-CEO Jim Balsillie said in a statement. “We expect a continuation of this momentum in the third quarter as we extend the rollout of new products including the BlackBerry Torch into additional markets and benefit from heavy promotional activities and increasing customer demand as we head into the holiday buying season.” [Further details to follow]