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RIM's New Smartphone Overshadowed by Quarterly Loss

Stocks in this article: RIMM AAPL MSFT AMZN FB

NEW YORK ( TheStreet) -- Research In Motion (RIMM) brandished a beta version of its next-generation BlackBerry smartphone this week. But the beleaguered company's earnings report today likely will overshadow any optimism.

The Canadian firm publishes its second-quarter numbers after the market close, with analysts predicting revenue of $2.5 billion and a loss of 46 cents a share, down from $4.2 billion and 80 cents a share in the prior year's quarter.

The past 12 months have certainly been eventful for RIM, marked by a CEO change and the effects of delayed product launches and increasingly fierce competition from Apple's (AAPL) iPhone and phones running Google's (GOOG) Android OS. The BlackBerry maker, which reported a worse-than-expected first-quarter loss, has seen its shares plunge more than 68% since this time last year.

Now, however, expectations for RIM's quarterly results may be "adequately negative," according to Sterne Agee analyst Shaw Wu. "For the first time in a while, we believe consensus estimates may be adequately pessimistic looking for a sizable year-over-year decline in revenue and a big operating loss," he wrote in a note released Tuesday. "With low expectations, we believe there is a fair chance that the company may meet or even slightly beat."

Wu, however, warns that beating Wall Street's estimates would provide only temporary respite from RIM's problems. "While RIM's valuation may appear depressed, we maintain our 'neutral' rating as we continue to be concerned with its fundamentals where competitive pressures from Apple and Google are unlikely to subside and the company faces a major product transition with its new BlackBerry 10 OS."

RIM showed a prototype of its new BlackBerry device, dubbed the Dev Alpha B, at its Blackberry Jam App event in San Jose, Calif., this week. The phone, which runs the forthcoming BlackBerry 10 operating system, will ship in early 2013.

TheStreet will be live-blogging RIM's results, starting at 3.45 PM ET:

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