“RIMM’s preliminary late night earnings report was a bombshell the longs could certainly have done without. The report was dismal, to say the least, and featured a startling warning of third quarter results. Earnings guidance was ratcheted down about 15%, from previous estimates, ranging from 89 cents to 97 cents to between 81 cents and 83 cents. Revenue targets were also slashed from $3.1 billion to $2.78 billion. RIMM’s poor relative strength (the shares were down more than 6% despite the nasdaq gaining 3.5%) yesterday clued me into the fact that all was not right with this company,” Mark Krieger writes for SeekingAlpha.
“The company blamed the downfall on a stronger US dollar and lower shipments of existing products, due to general economic weakness. RIMM was able to sign up 2.6 million new subscribers for the quarter, but was woefully short of its expectations of 2.9 million new customers,” Krieger writes. “The analysts at Deutsche Bank think RIMM’s disappointing results could also be blamed on poor reception of its new products (Storm and Bold). They contend the company’s latest gadgets have been subject to weak demand due to numerous flaws.”
Krieger writes, “Although the shares have dropped more than 75% form their 52-week highs, more downside is in the cards… I would not be surprised to see the shares plummet all the way down to the $20 mark.”
Full article here.
Ruthie Ackerman reports for Forbes, “On Tuesday Research In Motion’s shares sank 6.2%, or $2.48, to $37.32, after JPMorgan Chase analyst Paul Coster slashed his earnings forecast. The Blackberry maker’s shares have plunged 67.1% since the beginning of the year.”
“RIM is set to report its fiscal third-quarter results on Dec. 18,” Ackerman reports.
Full article here.