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News Breaks | | | | September 27, 2012 | | 10:46 EDT |  | RIMM | Earnings Preview: RIM Q2 expected to be weak
Research in Motion (RIMM) is expected to report Q2 earnings after the market close on Thursday, September 27, with a conference call scheduled for 5:00 pm ET. The consensus estimate is (47c) for EPS and $2.49B for revenue, according to First Call. Shares have rallied by 5% since the Blackberry maker shocked the market on Tuesday -- by reporting a much-larger-than expected jump in new users of its BlackBerry service to 80M. However, analysts expect the optimism that this news inspired to be short lived, as they expect another set of poor results for Q2. Last earnings call, management said it expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment -- from the likes of Google (GOOG) and Apple (AAPL) -- lower handset volumes and potential financial and other impacts from the delay of BlackBerry 10. The company also expects to incur restructuring related charges of approximately $350M by the end of FY13, primarily associated with its global workforce reduction. For Q2, Wells Fargo estimates Research in Motion shipped 6.5M handsets in Q2 vs. consensus 6.9M and its Q2 estimates for revenue, gross margin, and EPS are $2.44B, 26.0%, and $0.52. The firm's Q2 subscriber ARPU estimate is $4.23, down 3.1% seq. and 14.7% year-over-year. Wells Fargo expects the company to provide an update on its cost savings initiative via its CORE program, which aims to achieve $1B of cost savings by FY13. The company recently held its BlackBerry Jam Americas developer conference where it said BB10 is still on track to launch in Q1 of FY13. | |
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News For RIMM From The Last 14 Days Check below for free stories on RIMM the last two weeks. |
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