This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM Sent Reeling

Updated from June 29

Research In Motion's (RIMM) stock stumbled in after-hours trading Wednesday after the company's second-quarter forecast fell shy of the Street's earnings estimates, and the company offered little news on a long-running patent dispute.

In early Thursday trading, shares of the BlackBerry maker were down $2.85, or 3.8%, to $73.06.

The plunge came despite the fact that the company posted first-quarter earnings that were a penny above analysts' forecast, reported strong growth in revenue and subscribers to its BlackBerry service and offered better-than-expected third-quarter numbers.

In its first quarter ended May 28, RIM earned $132.5 million, or 67 cents a share, helped in part by a tax credit. That result was up from the same period a year earlier, when the company earned $55 million, or 28 cents a share.

Revenue surged 68% year over year to $453.95 million.

Excluding the $26.9 million tax credit, related to a ruling in Canada, and after-tax legal expenses of $4.5 million, RIM would have earned $110.10 million, or 56 cents a share. The legal expenses relate to the recent resumption of its patent dispute with holding company NTP. An announced settlement in that case fell apart earlier this month.

On average, analysts polled by Thomson First Call were expecting the company to earn 55 cents a share on $452.15 million in sales for the quarter, ostensibly on this pro forma basis. The company previously predicted that it would earn 51 cents to 56 cents a share on sales ranging from $430 million to $455 million.

RIM had not disclosed how the failure of its recent settlement talks would affect its earnings for the just-completed and coming quarters.

Though the company came in above analyst estimates for the just-completed quarter, it warned analysts to bring down their forecasts for the second quarter. The company now expects to earn 57 cents to 63 cents a share in the current quarter on revenue ranging from $465 million to $490 million.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs