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

RIM Sinks as Forecast Falls Flat

Updated from June 25

SAN FRANCISCO -- Shares of BlackBerry maker Research in Motion (RIMM) plunged after the company missed Wall Street's first-quarter expectations and guided below profit estimates for the second quarter.

Shares of RIM sank 8.5% to $130.18 in premarket trading Thursday.

RIM said first-quarter profit rose to $482.5 million, or 84 cents a share, compared with a net income of $223.2 million, or 39 cents a share, a year earlier.

Revenue rose 107% to $2.24 billion from $1.08 billion a year ago.

Cramer: RIM's Still Got Juice - Buy Now

Analysts polled by Thomson Reuters were expecting revenue of $2.27 billion and earnings of 85 cents a share.

Approximately 2.3 million BlackBerry subscriber accounts were added in the quarter, bringing the total BlackBerry subscriber account base to more than 16 million. RIM had forecast net subscriber account additions to be approximately 2.2 million during the quarter.

Nearly 60% of the subscriber additions in the quarter came from non-business users and they now represent about 40% of RIM's total user base, the company said.

But it was the spike in expenses and a decline in gross margins that had analysts on the company's conference call worried.

Gross margin for the quarter fell to 50.7% from 51.8%, the same quarter a year ago.

The company's selling, general and administrative expenses grew 22%, compared to expectations that pegged the rise at around 17% to 18%. That means the company spent about $10 million more than it had expected, pointed out Citigroup analyst Jim Suva.
1 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 $92.69 -0.59%
NOK $5.66 -0.53%
FB $119.49 1.40%
GOOG $711.11 1.40%
TSLA $214.84 1.60%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs