This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Palm Slapped on Weak Guidance

For its first quarter, Palm predicted earnings of 13 cents to 14 cents a share -- 18 cents to 19 cents a share excluding options costs -- on sales of between $380 million and $385 million.

In contrast, the Street had previously forecast earnings for the quarter of 22 cents a share excluding options expenses on $413.4 million in sales.

In the first quarter last year, Palm earned $18.2 million, or about 18 cents per split-adjusted share, on sales of $342.2 million.

Palm is discontinuing sales of its Treo 650 model in Europe because of new environmental regulations there, Colligan said, explaining why the current quarter's results will likely fall shy of the Street's estimates.

While the company plans to replace the 650, the only model it sells in Europe, with a new Treo smartphone, it won't introduce that phone until an undisclosed time later this year, the CEO said.

In addition to the sales gap in Europe, the company is seeing slower-than-expected sales of its Treo 700w, Colligan said.

Although Palm launched the model at the beginning of this year, many corporations didn't begin testing it until push email software became available for the device in April, Colligan said on a conference call.

He said that enterprises typically take three to six months to test out equipment before deciding whether to purchase it, implying that sales may pick up this fall.

"We're confident our strategy is sound and that we'll see trials turn into sales in the near future," Colligan said on the call. "It's prudent to set reasonable guidance that we can meet," he later told TheStreet.com.

Palm appears to be more optimistic about the full year. The company did not give specific earnings guidance for the full year.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • 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