Canada’s Waterloo, Ontario based Research in Motion, maker of the best selling Blackberry devices, announced today that fourth quarter profit rose 31%. Sounds good when you say it like that. Unfortunately, for shareholders, RIMM didn’t meet analyst expectations, and the stock is currently trading down 11% in after hours trading.
The company reported net income of $934 million, ($1.78 per share) in its fourth quarter ending Feb. 26. Prior years fourth quarter net income was $710 Million, or $1.27 per share. That’s an increase of $224 million, or 31% over the prior years fourth quarter.
Unfortunately, analysts pulled some numbers out of thin air, making RIMM’s stellars not look so stellar, causing the stock to tank in after hours trading. The company did also issue a weaker than expected outlook, along with weaker revenue numbers, causing the after hours selloff
But still, in the future, one hopes that the analysts are punished when they get THEIR estimates wrong, instead of company’s stock getting punished when the analysts are wrong on their estimates. Sound fair to you?
Research In Motion Reports Year-End and Fourth Quarter Results for Fiscal 2011
American Chronicle, on Thu, 24 Mar 2011 14:09:25 -0700
For the full year fiscal 2012, RIM expects earnings per share to be in excess of $7.50 fully diluted. Revenue for the first quarter of fiscal 2012 ending May 28, 2011 is expected to be in the range of $5.2-$5.6 billion. Gross margin percentage for the …
RIM issues weaker-than-expected outlook, shares down
WXEL, on Thu, 24 Mar 2011 14:08:34 -0700
Analysts, on average, had expected earnings of $1.76 per share and revenue of $5.64 billion, according to Thomson Reuters I/B/E/S. “Generally looks like Q4 was in line with expectations, Q1 is a little lower on EPS due to research and development, …
BlackBerry maker RIM says earnings up 31 percent in 4Q, but expects shift to …
CanadianBusiness.com, on Thu, 24 Mar 2011 14:05:40 -0700
By Peter Svensson NEW YORK (AP) – Research in Motion Ltd., the maker of the BlackBerry, says its profit jumped 31 percent in its latest quarter, but it expects sales to shift toward cheaper models this quarter.RIM shares are falling almost 11 percent …
RIMM Disappoints on Revs, Guidance
FavStocks, on Thu, 24 Mar 2011 14:05:16 -0700
Research In Motion posted earnings of $1.78 per share in the quarter, topping the $1.76 estimate. But its $5.6 billion in revenues missed expectations for $5.64 billion. Far more damaging, however, was the company’s reported guidance for 1st quarter …