Research in Motion Ltd. (NASDAQ: RIMM) posted disappointing earnings today and shares are paying for it. The smartphone giant posted $0.84 EPS on $2.24 Billion in revenues. The First Call estimates were $0.85 EPS on $2.27 Billion in revenues.
During the quarter, RIM shipped approximately 5.4 million devices. Approximately 2.3 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 16 million.
As far as guidance goes, this is a disappointment as well. Next quarter it sees $0.84 to $0.89 EPS on a range of revenues of $2.55 to $2.65 Billion. First Call has estimates at quarter’s estimates are $0.90 EPS on $2.44 Billion in revenues. Net subscriber account additions in the second quarter are expected to be approximately 2.6 million.
Shares closed up 1.3% at $142.34 in regular trading, but shares are taking a breather. The stock in after-hours activity is down considerably around $130.00 in the initial reaction. After a major rise that the stock has seen, this sell-off is more than understandable.
Apple Inc. (NASDAQ: AAPL) is also down marginally after the RIMM report, but only by about 1.5%.
Jon C. Ogg
June 25, 2008
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