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RIM posts strong quarterly earnings and lousy guidance, stock falls 10%

By: , IntoMobile
Thursday, March 24th, 2011 at 3:17 PM
RIM BlackBerry
RIM BlackBerry

RIM announced its fourth quarter financials for the fiscal year ending February 26, 2011 and while its quarterly results are strong, its guidance is shaky. The Canadian handset manufacturer shipped 14.9 million BlackBerry handsets in the last three months. This figure that is at the top of its estimate for the quarter, but less than the 16.2 million iPhone Apple sold in its quarter ending in December. For the year, RIM sold 52.3 million handsets, a 43% increase over the previous fiscal year.

RIM also earned $934 million this quarter, or $1.78 a share, which is up from $710 million ($1.27 a share) year over year. These quarterly earnings also beat analyst estimates which were looking for $1.75 per share. Revenue for the quarter was $5.56 billion, up from the $4.08 billion reported in the same quarter last year, but slightly below the street estimate of $5.65 billion.

RIM’s outlook for the upcoming quarter was lower than expected and its stock dropped more than 10% in after hours trading. RIM expects its quarterly revenue to drop to $5.2 to $5.5 billion and its earnings per share to fall to $1.47 to $1.55 a share. This lowered guidance is the result of a lower average selling price for its handsets, an increased level of investment in its upcoming PlayBook tablet and “the risk of potential disruption in RIM’s supply chain as a result of the recent earthquake in Japan.”

[Via Marketwire]

About The Author

Kelly Hodgkins

Kelly spent the last four years covering mobile technology at places like BGR, Gizmodo and The Unofficial Apple Weblog. Before writing, she spent a few years working with and teaching others how to use Adobe Flash and Macromedia Director. Even earlier than that, she spent several years as a Ph.D student in Microbiology. When she's not writing, she can be found fishing the lakes and hiking the mountains of Western Maine with her husband and tribe of children. You can follow her on Twitter @kellyhodgkins.

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  • Anonymous

    God, such stupid reporting. Apple’s quarter is not the same as RIM’s so there is not point to compare quarterly sales, you are not comparing the same thing. They also reported that they are the number 1 smart phone in the US, Canada, the UK and some other market — but not reported.

    Guidance is lower because they are investing in product and branding – gee I don’t want that stock! All I can say is I’m going to make some money off of nervous and dumb investors again. Who wants to take my bet that this tock will not rise???

    Will RIM overtake apple? Not likely. Does that mean I don’t want the stock? Nope.