This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs