Handspring Makes This Quarter, but Sees Tougher Landings Ahead

Updated from 4:37 PM

Like a teenager, Handspring (HAND Quote) would rather Papa Palm (PALM Quote) drop her at the corner rather than drive her Uncle Buck-style all the way up Wall Street.

Thursday Handspring met the Street's expectations for the third quarter ended March 31, losing 6 cents per share on $123.8 million in revenue, just as it promised it would do March 27. Unswayed by Handspring's protests that it was fine financially, analysts lowered their revenue estimates for the upstart after fatherly Palm lamented a softening macro-economic environment.

According to Multex.com, consensus revenue expectations dropped from $120 million to $118 million over the past four weeks, with earnings estimates holding steady at a 6-cent loss. You'd think blowing away Street predictions for the past three quarters in a row (9 cents in Q2, 4 cents in Q1 and 5 cents in Q4, working backward) would give you some credibility. ...