Two Ways: Research In Motion Has Slowed, Not Stopped

By Terry Woo  JUN 18, 2009 5:15 PM

Strengthen your portfolio in good times and bad.


All eyes were on Research In Motion (RIMM) after the bell. The maker of BlackBerry reported first-quarter earnings of $0.98 per share, which was $0.04 better than consensus estimates. Revenues grew 52.7% year-over-year to $3.42 billion which was largely in line with consensus expectations of $3.43 billion.

In the accompanying statement, the company said it added net subscribers of 3.8 million, which was inline with its forecast of adding 3.7 to 3.9 million. Margins came in at 43.6% vs. 43.3%.

Looking forward to the second quarter, RIMM said it sees profits coming in around $0.94 to $1.03 per share. Analysts were expecting $0.97 a shares. Second-quarter revenues are also projected to come in around $3.45 to $3.70 billion, versus consensus forecasts of $3.61. T

he company said it is having a great start to the 2010 fiscal year due to financial performance as well as market share gains as IDC’s latest estimate says the company has 55% of the US smartphone market.

From the Bull Pen: The earnings reaction isn’t too pleasant right now with shares currently off 6% But bulls can still play this stock for a trade. Watch the behavior into $70 tomorrow. A sell stop can be set below that level on upside tries.

From the Bear Cave: On the other hand, RIMM’s only products are its BlackBerries, and the competition is increasing making it a much tougher environment. Those bearish can look for entry near resistance points ($76 and $80), if and when it gets there.

What a long day. Have a good night! !
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.