RIM Shares Tank on Lousy Outlook

March 24, 2011 at 1:28 pm PT

Investors wondering if Research in Motion’s thriving international business is strong enough to offset the pressures the company faces in the North American smartphone market got their answer this afternoon: Yes, for now.

Posting fourth-quarter financials after market close Thursday, the company said it sold 14.9 million BlackBerrys, a number in the upper end of its projected range. Full-year shipments were a record 52.3 million units–a 43 percent improvement over the year prior. And it reported earnings per share of $1.78, besting analyst estimates, which had called for $1.75 per share.

Sadly for RIM, revenue came in at $5.56 billion, a bit short of the consensus estimate of $5.65 billion. Also falling short of estimates was the company’s outlook for the current quarter: The BlackBerry maker said it expects revenue of between $5.2 billion and $5.6 billion, and earnings of between $1.47 and $1.55 a share. That’s a far cry from the $5.6 billion and earnings of $1.65 a share for which analysts had been looking and it caused an after-hours sell-off that dragged the stock down nearly 10 percent. Read over RIM’s explanation for it and you’ll see why.

“This guidance range reflects a mix shift in handset towards lower ASP products in the first quarter and an increased level of investment in research and development and sales and marketing related to our tablet and platform initiatives. The guidance range is slightly wider than normal to reflect the risk of potential disruption in RIM’s supply chain as a result of the recent earthquake in Japan.”

Tagged with: Blackberry, BlackBerry PlayBook, digital, earnings, financial, Jim Balsillie, John Paczkowski, Mike Lazaridis, PlayBook, Research In Motion, RIM

comments so far. Add yours.

Anonymous

OK Rimmtards;

Let the excuses begin!

But please use some originality for a change

Ayuh
Anonymous

originality like the term “Rimmtards”?
Anonymous

Sounds to me like they might actually be onto something there.

http://www.real-privacy.it.tc
Anonymous

Woot Woot Playbook to run Android Apps!!! Wouldn’t want to be the suckers that just sold RIM stock BAAAAHAHAHAHA!!!

Game changer for sure, and since QNX will soon be on Blackberry Phones these phones will also run Android Apps.

44anal are you now a RIMtard, or are you an apple fan boy who just got reamed up the ass????
http://www.iphoneincanada.ca Gary

Uhh…just what exactly does that paragraph mean? Sounds like a live quote from Ba-silly on stage.
Anonymous

It basically means that RIM has no current or planned product that will compete in the upper end of the mobile device market, where higher ASPs reside. It means that RIM doesn’t have confidence that its PlayBook will compete with iPad, Xoom, Galaxy Tab and more to come. It means that RIM is aware that its Torch is not competitive with Galaxy S, DROID, iPhone and Epic – and that it is in a wholly reactive, hold-the-fort position.

Essentially, it means that RIM is going to accept lower stock price and valuation like a good boy.
Anonymous

Rim Rocks and will not stop here. It is based in Waterloo Ontario Canada and is the leader. Just sit tight and watch! What a great product line and it will even get better. Watch those stocks climb to $80 plus.
Anonymous

I find it idiotic that fellow Canadian bashes a Canadian company because he’s fanboy of some other company.
http://www.iphoneincanada.ca Gary

Am I bashing RIM, or are they doing it to themselves with the products they’ve released over the years? Please, I support Canadian companies like any good ol’ Canuck, but RIM’s decisions have turned out to be an embarrassment in the smartphone arena.

The Playbook hasn’t proved anything, so far it’s just been hyped relentlessly. They stock took a dive for a reason. You’re the idiot for not seeing this.
Anonymous

Right, the PB hasn’t “proved anything”. So wait until it’s released before bashing.

What decisions? Wait. I bet you gonna mention the Torch? That phone that US media trashed from day one. Despite that, it sold very well. In fact, right now, AT&T sold more Torch than Moto’s supposedly champion phone, the Atrix. Embarrassment in the smartphone arena? An embarrassment that makes them 1B$ profit each quarter (probably the 2nd most profitable smartphone manufacturer)?

The stock took a dive because of below expectation outlook for a quarter that saw no new product release, not because of the PB.

If you keep listening to US media without any perspective and critical thinking, you will surely believe that RIM’s gonna crash any quarter now.
Anonymous

And speaking of Moto Atrix. It’s already selling at a discount in Canada (69$ with 100$ off, on a contract with Bell). That’s after what, 1 or 2 weeks of launch in the Great White North?

This is the phone that US media have been hyping about after CES 2011! That beast of a phone with uber specs — best phone of CES 2011!

Will the same US media now write a story about the Moto Atrix disappointment (if not failure)? Of course not. However, if that was RIM instead of Moto, surely you’d see numerous stories by the US web media with dramatic headlines about a “major embarrassment” from RIM.

Oh and by the way, remember that big headline in the media about Amazon supposedly selling the Torch at a discount because of the allegedly bad sales right after launch? Well, a similar “discount” happened for the Atrix (at Amazon and Walmart). But of course, the US media did not spin that negatively with Moto as they did with RIM.
http://www.iphoneincanada.ca Gary

At the end of the day, money talks. Let’s wait and see how the Playbook does
in the free market. There are now choices in the tablet arena, other than
the iPad. Why will people be inclined to choose the Playbook over say, the
Xoom or Galaxy Tab or iPad 2?
http://www.facebook.com/people/Feelys-Li/100001815937138 Feelys Li

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