Palm Shows Mixed Hand (PALM)

Palm Inc. (NASDAQ: PALM) has been one of 2009’s top performers due to the anticipation of the Palm Pre smartphone this month.  The company’s earnings are out and it has shares marginally higher.  The smartphone maker posted -$0.40 in non-GAAP EPS  on $113.2 million in non-GAAP revenue.   As a reminder, the Palm Pre sales were NOT included in these results.   Thomson Reuters had estimates as -$0.62 EPS on $80.6 million in revenue.

The company shipped a total of 351,000 smartphones in the quarter, representing a 6% jump from the third quarter of fiscal year 2009 and a year-over-year decline of 62%. Smartphone sell-through was 460,000 units, down 5% vs. the third quarter of fiscal year 2009 and down 52% year-over-year.  Cash and cash equivalents and short-term investments were $255.1 million, which includes the $103.5 million in net proceeds from the company’s public equity offering from March.

No guidance was offered, but the company’s estimates for next quarter are -$0.30 EPS and $279 million in revenue.

Because everything has hinged on this Palm Pre launch, you might see all sorts of moves in the after-hours session during the conference call.  That just depends on what management says regarding the CEO change and on the Palm shipment expectations.

Be advised that there are huge differences in this stock in the GAAP and non-GAAP data for earnings metrics and for its units.

Shares closed unofficially up over 0.5% at $14.02 and the 52-week range is $1.14 to $15.25.  The trading in after-hours is up around $14.25.

Jon C. Ogg
June 25, 2009