“Whoa! I had to do a double take when I was reporting Research in Motion’s second quarter earnings on the air moments ago because I couldn’t believe they were this weak,” Jim Goldman reports for CNBC. “In this case, looks were not deceiving.”
“RIM did in fact beat on the bottom line, reporting $1.03 against the $1 Wall Street was looking for. And the company’s 44.1 percent gross margin was also better than expected and encouraging. But that good news came on lighter than expected revenue with RIM reporting $3.53 billion versus the $3.6 billion consensus. And the numbers go downhill from there: The 3.8 million subscribers comes against the 4.1 million expected; the 8.3 million Blackberrys shipped contrasts sharply with the 8.7 million analysts anticipated,” Goldman reports.
“And looking at Third Quarter guidance, the news gets even more dismal, at least as far as RIM’s historical performance is concerned: RIM is offering an EPS range of $1 to $1.08. Analysts were expecting $1.05. The revenue range from the company is now $3.6 billion to $3.85 billion, which falls well below the consensus estimate of $3.9 billion,” Goldman reports. “RIM also expects 4 million to 4.3 million new subscribers, which is again lower than the 4.3 million Wall Street was looking for.”
Goldman writes, “The snap judgment would be to take the entire smartphone sector lower based on RIM’s news, but this actually might be veiled, good news for the likes of Apple.”
Much more in the full article here.