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

Apple, Microsoft, Make RIM's Road Rockier

Guilty of taking its eye off the ball at a crucial point in the smartphone game, RIM has bled market share. The Canadian firm has also been rocked by delayed product launches and its besieged former management team. As a result, investors have lost faith in RIM during the last 12 months, pushing its shares down more than 76%. Apple shares, in contrast, have risen 74% while Microsoft has climbed more than 24% over the same period.

In a note released last week, Citigroup predicted that RIM's fourth-quarter results will likely be in-line with analysts' estimates, but warned that the company's guidance may disappoint.

"We expect investors to focus on full year outlook (though we do not believe the company will provide this) and any update to the timeline for the new phones that RIMM is planning to launch in the second half of 2012," explained Citigroup analyst Jim Suva, in a note. RIM, he added, is at risk of missing the 2012 back-to-school season thanks to delaying its next QNX-based BlackBerry products to the second half of this year.

Analysts surveyed by Thomson Reuters are currerntly looking for RIM to report second-quarter revenue of $4.255 billion and earnings of 66 cents a share. For the coming fiscal year, analysts are looking for sales of $17.31 billion and earnings of $2.74 a share.

Sterne Agee's Wu, however, thinks that RIM's guidance may not be as bad as anticipated.

"Due to much lowered expectations with the Street cutting estimates aggressively over the past few weeks, we believe RIM may report a decent quarter and guide less worse than expected," he explained, in a note released on Thursday. "Because of this, we would not be surprised to see a near-term relief rally in RIM shares."

Wu, however, has a neutral rating on RIM's shares, citing concerns with the company's fundamentals and its upcoming transition to the BlackBerry 10 operating system.

RIM's shares dipped 6 cents, or 0.44%, to $13.61 on Thursday.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
2 of 2

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 $111.79 0.17%
GOOG $652.30 0.87%
MSFT $46.89 -0.23%
FB $94.12 -0.15%
TSLA $219.25 1.70%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs