RIM’s Q3 results: today
Posted Dec 16, 2010 03:55:06 AM.
This article is more than 5 years old.
Analysts are expecting strong numbers as Research in Motion prepares to release its third quarter results later today.
The consensus seems to be that the new BlackBerry Torch will bolster RIM’s Q3 results, with estimates suggesting the Waterloo tech giant sold as many of the new devices (14.1-million) over the past three months as Apple sold iPhones.
RIM has forecast earnings between $1.62 and $1.70 per share and revenue of between $5.3 billion and $5.55 billion.
Tech analyst Carmi Levy is among those who are bullish on RIM’s returns.
“RIM is a company that executes quarter after quarter and continues to grow,” Levy points out.
He’s a firm believer that not only the Torch but also BlackBerry’s new operating system, OS-6, will propel the company’s results.
“Yes, it is the hardware but more significantly it’s what’s powering the hardware and that really is a huge story for RIM. They’ve pulled it off almost flawlessly,” says Levy.
He expects RIM to use that new operating system to continue to build better products that will, when they hit the market in 2011, make 2010 pale in comparison.
As for critics who call RIM’s reach into the consumer market unsustainable if it hopes to maintain its corporate base, Levy believes the needs of both markets can be met adequately. The problem, according to Levy, comes primarily from investor expectations.
“It’s (RIM) been getting beaten up because some people expect it to be doing even better, some people expect it to be Apple,” Levy surmises. “Well, RIM isn’t Apple. It’s got a different trajectory and I think we need to realign our expectations a little bit with reality as we go into the new year.”
Analysts, on average, expect the company to report earnings of $1.64 per share on revenue of $5.40 billion. In the year ago quarter, the company reported earnings of $3.92 per share on revenue of $3.92 billion.
In the precedent second quarter, RIM’s net income was $796.7 million, or $1.46 per share. Revenue grew 31% to $4.62 billion.
At its last earnings call in September, the company said that it expects earnings of $1.62 to $1.70 per share, and revenue of $5.30 billion to $5.55 billion. The company expects to ship between 13.8 and 14.4 million BlackBerrys in the third quarter of fiscal 2011.
