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.
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