“Investors in Research In Motion Ltd. may be pondering a key question ahead of the company’s earnings report later this week: Can things get any worse?” Dan Gallagher reports for MarketWatch.
“As far as sentiment on Wall Street goes, the answer appears to be yes,” Gallagher reports. “Research In Motion RIMM -1.07% is already expected to report a 19% drop in sales and a 54% plunge in net income for the quarter ended Feb. 29, as sales of its once-popular BlackBerry line of smartphones stalls in the face of strong competition.”
Gallagher reports, “Device shipments are expected to fall more than 25%, and slowing subscriber growth will likely cut into the lucrative stream of recurring revenues RIM draws from carriers for running the backbone network to manage its messaging services… ‘We believe [RIM’s] dire outlook could deteriorate well below consensus expectations,’ wrote Jeff Kvaal of Barclays in a Friday note to clients titled ‘Grim and getting grimmer.'”
Read more in the full article here.